Gaming (or Gambling) is not a novel concept in India and its roots can be traced back to the Indus Valley Civilization where archaeologists found dice made out of materials like sandstone and terracotta and have also found evidences which suggested the existence of cockfighting and betting.1
According to a KPMG report2, by 2025, the Indian gaming industry is expected to be valued at INR 290 billion [casual gaming – INR 169 bn, real money gaming – 61.3 bn, online fantasy sports – INR 54.3 bn and Esports – INR 5.7 bn]. From sponsoring IPL teams to becoming unicorns, the industry is no longer seen as 'esoteric' and is a core part of a modern media and entertainment industry.
The Industry is significantly regulated – both by the Central Government and by various states. The online gaming industry, specifically real-money games, have been under tighter scrutiny over the past couple of years from respective state governments with bans in place in a few states. The broad political consensus appears to be that gaming (especially when it involves money) should be either banned or strictly regulated.
Much like Eubulides of Miletus, courts have been drawn into resolving this paradox – when does gaming degenerate into gambling? The law requires the courts to ask themselves the question of whether a particular game is a game of skill or is it one of merely of chance. Games of chance that involve money or prizes tend to be characterised as falling within the prohibition of gambling. Games requiring skill do not.
Below is a table summarising the position across multiple states:
|
States |
Are games of skill that involve money prohibited? |
|
Andhra Pradesh |
Yes |
|
Arunachal Pradesh |
Yes [no exception for games of skill with stakes and games of skill with stakes may be played for entertainment after permission from District Magistrate] |
|
Assam |
Yes |
|
Bihar |
No |
|
Chhattisgarh |
No |
|
Goa |
No |
|
Gujarat |
No [except for game of poker] |
|
Haryana |
No |
|
Himachal Pradesh |
No |
|
Jammu and Kashmir (till 31st October 2019) |
No |
|
Jharkhand |
No |
|
Karnataka |
No |
|
Kerala |
No |
|
Madhya Pradesh |
No |
|
Maharashtra |
No |
|
Manipur |
No |
|
Meghalaya |
No [specific games of skill and games of chance can be operated, only vide a license] |
|
Mizoram |
Yes |
|
Nagaland |
Yes [specific games of skill can be operated, only vide a license] |
|
Odisha |
No [no exception for games of skill with stakes] |
|
Punjab |
Yes |
|
Rajasthan |
Yes |
|
Sikkim |
Yes [specific games can be operated, only vide a license] |
|
Tamil Nadu |
Yes |
|
Telangana |
No [no exception for games of skill with stakes] |
|
Tripura |
Yes |
|
Uttar Pradesh |
Yes |
|
Uttarakhand |
Yes |
|
West Bengal |
Yes |
|
Andaman and Nicobar Islands |
Yes |
|
Chandigarh |
Yes |
|
Dadra and Nagar Haveli and Daman and Diu |
Yes |
|
Delhi |
Yes |
|
Jammu and Kashmir (from 31st October 2019) |
Yes |
|
Ladakh (from 31st October 2019) |
Yes |
|
Lakshadweep |
Yes |
|
Puducherry |
Yes |
The key impact of the differences in legislation is that nuanced technological solutions (including geo- fencing) may have to be adopted prior to successfully rolling out any games across India. The policy question that remains is whether the country would benefit from a unified gaming regulation?
Footnotes
1 www.bbc.co.uk/schools/primaryhistory/indus_valley/games_and_toys/
2 assets.kpmg/content/dam/kpmg/in/pdf/2021/06/digital-mobile-casual-gaming-in-india.pdf
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
