In the Indian legal context, the nature of games is primarily determined by whether their outcomes depend on skill or are merely a matter of luck. From thereon, the Supreme Court, in the catena of judicial pronouncements, has analysed the law relating to the same and held that despite there being an element of chance, if a game is preponderantly a game of skill, it would nevertheless be a game of mere skill. Accordingly, the expression ‘mere skill’ (used in the Public Gambling Act) would mean a substantial degree or preponderance of skill. Additionally, central legislations like the Public Gambling Act of 1867 and the Information Technology Act of 2000 influence gaming activities by addressing key issues such as illegal gambling and cybersecurity.

B. Central Oversight Through IT Rules and Self-Regulation

• The second stage had been submitted to render Poker a game of skill by the Petitioners, such as assessing others players’ faces and inducing them to bet.
• Further, the Supreme Court, while deciding whether Rummy is a game of chance or a game of skill, held that it is predominantly and primarily a game of skill.
• The outcome of gambling could also be long-term for example a future sports contest.

The recent amendments to the IT Rules, 2021, signify a growing recognition of online gaming’s economic potential while ensuring a safe gaming environment through robust governance. However, at that stage as well, the outcome of the game was totally aviator signal dependent on the card dealt. The submissions of the Petitioner with reference to mathematical assessment and psychological observation and other assessment could not render Poker into a game of skill. Furthermore, how a player plays is not a skill as it depended on the traits of a player and how deep- pocketed he was. The SC in M.J. Sivani & Ors v State of Karnataka & Ors 28 had, while referring to poker machines, observed that such games were games of chance. Casino gaming is regulated under State-wise anti-gambling laws in India (“Gaming Enactments”).

It was subsequently made clear to everyone that the Union’s authorities must block gambling websites and portals in order for the ban to be completely implemented. Rummy and poker portals have long opposed all of these bans, and the Madras High Court was recently compelled to undo the gains made by the amendments. The population that commonly participates in virtual gaming is extremely outraged as a result of this. Given the fact that courts have ruled that a game of skill is not gambling, many jurisdictions have enacted broad restrictions on it. It is seen that some states only have laws governing games of skill, others have laws governing both games of skill and chance. This illustrates the lack of consistency in state-by-state online gambling legislation.

Laws of Online Gambling in India

It makes it illegal to operate or attend gambling establishments, although it exempts some skill-based games. The States of Assam, Odisha, Kerala, Telangana, Andhra Pradesh and Karnataka are the exceptions to this rule. The respective gambling laws of these States restrict all forms of staking on any games, irrespective of whether it is for “games of chance” or “games of skill”. The status of whether a game of skill may be played for stakes is presently unclear, as various High Courts hold divergent views on the topic.

S.6 of the FEMA empowers RBI to regulate capital account transactions, which would encompass various aspects of online gaming, such as payments, receipts, and foreign investments. Further, compliance with FEM (Deposit) Regulations, 2016, will also have to be ensured, as these govern foreign currency accounts in India. Therefore, the online gaming platforms that receive and remit international payments must establish these accounts in compliance with FEMA.

Game of poker, horse racing, wagering casino slots, blackjack, roulette, and sports betting. Online gambling is the practice of engaging in gambling using the internet for wagering on events and games in an effort to win cash or prizes. It can be played on a variety of gadgets and uses virtual chips or bitcoins rather than actual money. A “common gaming house” is a venue where individuals assemble for gambling purposes, typically involving games of chance. Operating or visiting such a place is illegal under the Public Gambling Act, of 1867.

However, under certain Gambling Legislations, like Delhi, it may not be necessary for such “profit or gain” to accrue to the person owning, occupying or keeping such premises in order for it to qualify as a common gaming house for certain purposes/games only. Section 3 provides that as long as a licensee under it is not providing a portal to players from other territories, games that are prohibited or considered to be gambling in those territories, the same shall be considered to be a genuine business venture not amounting to gambling. This failed despite India being the most sought out country for online gambling.

Regulations for offshore gambling sites vary depending on the country or jurisdiction in which they operate and the regulations enforced by that particular jurisdiction. Online games with stakes/ real money cannot be played in whole of India as the laws of the states of Assam, Odisha and southern State of Telangana specifically prohibit online games with stakes in India. The license for online skill games with stakes from Nagaland State Government is valid in all states in India except in those states which have specifically prohibited the activity of online games with stakes. The Stategovernments are empowered to make laws on the subject of betting activities asper the Seventh Schedule to the Constitution of India (Entries 34 and 62 ofList II). Where a specific State legislation on gambling/ betting does notexist, the Public Gambling Act, 1867 is applicable which prohibits gambling andbetting activities however, does not include “games of skill” in itsambit.

The Law Commission is yet to provide itsrecommendations on the subject of sports betting in India yet. It isconsidering the question as to whether to consider sports betting to be a gameof skill. This Ordinance seeks to make significant amendments to the Telangana State Gaming Act, 1974 (Gaming Act) so as to extend its application to the realm of online gaming. The law continues to remain grey in terms of whether the state wise gambling enactments cover online gaming sites as well.