In the last two decades, people around the world have been using technology in their day-to-day activities like never before. This has led to new policies and regulations being introduced in several nations to regulate issues that could arise due to the use of technology.
India also has many of these policies guiding the activities in different sectors. Nevertheless, there are still some sectors that remain largely unregulated. One of these is the online gaming Industry. However, government agencies and courts in recent times have been making efforts to review the policies guarding online gaming and introduce new ones where necessary.
The Indian gambling law
At the moment, there’s only one law that regulates gambling in India. This is the Public Gambling Act of 1867. It bans individual gaming done in gaming centres to make profits. It also differentiates gaming into two; games of chance and games of skill.
Games of chance are forms of games which do not require the application of skills and are determined by pure luck. Hence, the law classifies games of chance as gambling. However, games of skill are those that require the application of skills and strategies and are thus permitted by the law.
The biggest shortcoming of this law is that it does not deal with online gaming. Thus, Indians take advantage of this loophole to play their favourite games online, whether or not they are skill games or chance games.
For example, it is legal to play Teen Patti online , but not in casinos. This is because Teen Patti is considered as a game of chance which is banned by the law. But as long as you’re playing at online sites, you’re free to enjoy the game without the fear of legal issues. Games such as Andar Bahar, Blackjack, Poker, and even slot machines can also be played online conveniently.
The reason there is no issue regarding playing online is that the sites hosting these games are not operated in India. And since the law only regulates games hosted in India, it does not cover online gaming operated elsewhere. This makes it possible for people to play on sites like Winning Days without having to make any explanation.
However, in recent times, a lot of people and state governments have been raising concerns on the need to regulate even offshore gaming. Hence, a few states have taken steps to introduce online gaming policies while others are still reviewing the matter.
Recent efforts made to regulate online gambling
On September 29, 2020, the Gujarat High Court attended to a PIL (public interest litigation) filed requesting restraint on online Rummy in the state. The court acknowledged that there is indeed a need for a proper legal framework to regulate and prohibit gambling activities online which were not covered by the 1867 law.
The court passed an order, directing the Gujarat government to pay attention to the issue and take the necessary steps. In making the statement, the court cited the recent amendments put in place by the State of Telangana to regulate online spaces. The court further asked the government to check if the online gaming space has been involved in money-laundering or violation of foreign exchange laws.
After Telangana, another state that followed with a prohibition of online gaming was Andra Pradesh. The state banned all forms of gaming and betting online and directed all internet providers to restrict access to over 130 apps and websites. These websites and apps include Adda52, PokerStars, Mobile Premier League, and many more.
Tamil Nadu also followed the example of Andra Pradesh and Telangana, banning all forms of online games and gambling. This is after the Tamil Nadu government complained that these gaming sites were cheating youngsters and increasing the rate of suicide.
How the online gaming industry is reacting
Online gaming websites have had no choice than to stop offering services to states where the activity has been banned. However, many stakeholders in the industry think that completely banning online gaming might be going a bit too far.
These industry experts believe that there are so many advantages which online gaming and betting could bring to these states, only if the government recognizes these benefits. For example, it could lead to an increase in revenue and also bring job opportunities to many people in the state. Gambling experts suggest regulations to guide online gaming activities rather than a complete ban.
