In this article, Himanshi Srivastava of Amity Law School (Lucknow) discusses Legality of Poker in India.

Legality of Poker in India

Justice AS Bopanna of the Karnataka High Court in a matter concerning arrests and raids in various Bangalore clubs for organizing poker games observed, “Having taken note of that in respect of the game of poker if played as a game of skill, license is not contemplated and further keeping in view the fact that permission in this case had been obtained in that regard, the petitioner would be entitled to conduct such games provided, the same is in accordance with law”. The order further directed the Police not to interfere with lawful activities of the club.

In this historic observation passed by the Karnataka High Court in Indian Poker Association v. State of Karnataka, (WP Nos. 39167 to 39169 of 2013) the Court ruled that playing skill games like poker in recreational club is permitted and no license is required for the same on 8^th October 2013.

Despite the limited applicability of the High Court verdict, the decision is a welcome first step in recognizing poker as a game of skill and would open floodgates for online and offline poker especially in Karnataka.

As per Indian Constitution, gambling comes within state subject and therefore the central act is applicable in all the states which do not have any particular gambling laws.

The Public Gambling Act of 1867, which applies to all of India, makes it a crime to either run a “public gaming house” or to even be present at one, and provides criminal penalties for both”.

The fact that this law is still in effect after almost 150 years tells us that this isn’t the most progressive country when it comes to gambling and that it is certainly true. One of the things they do distinguish between is something that does play a big role in contemporary gambling law though, and that’s the distinction between games of skill and games of chance, with only it falling under the law.

According to the Supreme Court of India, while games of chance are illegal, games that are based upon preponderance of skills are not. The landmark judgment here involved betting on rummy games, although it is assumed that poker would be a game of skill as well as under criteria.

This is especially likely since with rummy the court found that the falling of the cards, even though it does not involve an element of chance, did include the impact of skill enough for them to determine that rummy is involves a preponderance of skill, which is the criteria they were looking for to exclude it as a game of chance.

This is exactly how poker works as well as though. In the above mentioned case[1] the matter came before the Madras High Court in India who ruled that the impact of skill element of poker indeed did not make it a game of chance and therefore illegal. The Supreme Court has yet to rule on this but it is likely they will agree, and this may end up having a significant impact on poker playing in India should be the decision to go the way poker players hope.

Live Poker in India

Legal Gambling in India is limited to playing the lottery, in most of the states, as once again individual states do have the power to make their own legislation. To put it simply, the general laws of India concerning gambling apply unless a state specifically sanctions it. So most have sanctioned lotteries, which would otherwise certainly qualify as a game of chance, but they can still be permitted if the law provides it.

The other States with more expansive gambling, Sikkim, even has licensed online gambling and online poker. It is up and running as well, and features several licensed poker sites, the largest of which is adda52.com which even has a team of sponsored Indian poker pros.

Online Poker in India

It is felt that it is legal for online poker players to play on legal poker sites in India, but the rub here is that it isn’t all that clear what would constitute a legal online poker site in India, and remains a grey as far as the law is concerned.

This is what is going on right now, as online poker players in India are just playing poker and generally don’t worry about whether or not it is illegal or not. While the legal system work out whether or not it is legal for them to do so or not, because no one is worried about this reality.

This is a huge potential market and is relatively untapped, and as the years go by it’s likely that India will continue to capture bigger and bigger slice of the online poker pie as they move up the rankings.

State Legislations on gambling practices

Seventh Schedule Entry 34 List II of the Indian constitution gives the ability to State government to choose the laws with respect to betting. It can disallow or allow betting in their state. Because of this liberal law different states have an alternate arrangement with respect to different betting recreations. In addition, there are diverse methodologies for various sorts of amusements.

Laws in Nagaland

Nagaland has as of late acknowledged and passed The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Bill, 2015 which forbids any type of betting in the state. Nonetheless, even this bill carries on an extent of “Recreations of Skill”. Be that as it may, to wager on these amusements on the web, the association needs to take a permit from the State Government. On the off chance that anybody is discovered leading unlawful business, i.e. offering with no permit, the individual would be at risk for a fine of Rs. 20 lakhs which would be trailed by a detainment of 6 months if not cured further.

Laws in Maharashtra

In Maharashtra, betting is denied by the State government. Bombay Prevention of Gambling Act, 1887 was passed by the administration to direct betting practices in the state. Nonetheless, area 13 of the demonstration leaves an extent of diversions of negligible aptitude. Segment 3 of the Act leaves the extent of a stallion race and canine races however race course needs to get a permit from the state government.

Laws in Goa

In Goa betting is admissible. Area 13A of The Goa, Daman and Diu Public Gambling Act, 1976 licenses betting in Goa, Daman and Diu however lodgings require consent from the state and they likewise need to pay a repeating and non-repeating charges for the same. The Act precludes normal gaming house in Goa, Daman and Diu. The individual who opens a typical gaming house can be detained up to 3 years and can be subject for a fine of 5,000 rupees. The comparative discipline stretches out to the person who is discovered gaming in like manner gaming house.

Laws in Sikkim

Sikkim has liberal laws contrasted with Maharashtra. The Sikkim Regulation of Gambling (Amendment) Act, 2005, grants the state to offer permit to a person who is occupied with working betting and to approve some betting house. The State has through Sikkim On-line Gaming (Regulation) Rules, 2009, made recreations like Roulette, Black Jack, Pontoon, Punto Banco, Bingo, Casino Brag, Poker, Poker Dice, Baccarat, Chemin-de-for, Backgammon, Keno, and Super Pan 9 legitimate. These amusements can be lawfully played on the web however the administrator needs to get a permit from the State government. The standards likewise indicate that the diversions must be protected, secure and reasonable.

Online Gambling Regulations

Indian law plainly denies betting in an online stage. It is controlled by Information Technology Act of 2000. The Intermediary Guidelines (Rules) 2011, distributed under this Act directs betting practices by middle people, which incorporates telecom specialist organizations, arrange specialist organizations, web access suppliers, web-facilitating specialist organizations, web search tools, online installment locales, online-closeout destinations, online-commercial centers and digital bistros. Area 3(2) (b) of the said Rules, restricts any practice which is identified with or which supports washing and betting.

The Public Gambling Act of 1867 does not talk about online gambling.

One choice, an individual has is to wager on online sites Bet365 and Dafabet which are facilitated in worldwide locales. These sites permit store in Indian monetary standards. As these sites have their workplaces in outside nations like the UK, they are not administered by Indian laws identifying with web based betting. In any case, there is as yet a danger of illicit cash exchange. The Payment and Settlement Act, 2007 licenses Reserve Bank of India to manage all on the web and electronic method of exchange. They have the expert to make standards and directions with respect to all the installment methodology.

Alongside the above-expressed act, Foreign Exchange Management Act (FEMA) 1999 controls exchanges. Nonetheless, it manages universal exchanges. Accordingly, if an individual is attempting to make a worldwide exchange, other than in Indian cash, it needs to agree to FEMA controls. In this way, web based betting despite the fact that is not explicitly denied is managed by different specialists. One can attempt to bypass these directions anyway it would be an unsafe decision.

Conclusion

In a real sense, the Public Gaming Law of India truly is just a law on paper, at any rate since the Indian Constitution gave singular expresses the privilege to choose these matters all alone, yet the way that the gatherings are battling this out in the courts shows this does make a difference.

LawSikho has created a telegram group for exchanging legal knowledge, referrals and various opportunities. You can click on this link and join:  

https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA

REFERENCES:

• Gambling Laws and Regulation in India, http://www.gamblingsites.com/online-gambling-jurisdictions/india
• Online Betting in India, http://www.onlinecricketbetting.net/country/india/
• India Gambling Laws, http://sportsbetting.net.in/gambling-laws.html
• Indian Supreme Court to Rule on Legality of Rummy and Poker, http://www.pokernews.com/news/2014/08/indian-supreme-court-rummy-and-poker-19116.html

[1] Indian Poker Association v. State of Karnataka, (WP Nos. 39167 to 39169 of 2013)