LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


Humans are social animals, and they play games and engage in sports to amuse themselves and increase their social relationships with others in society. Mankind has created a wide variety of games because of ingenuity and technological advancement. There are countless online and offline games available nowadays, with gambling being one of them. It is regarded as having a very ancient origin and is one of the public's leisure pastimes.  People use activities like gambling to satisfy their social and economic requirements. The winners and losers may be determined by knowledge, skill, and a lucky break. This causes a great deal of uncertainty regarding whether these games are lawful in India.

Meaning of gambling:

Understanding what exactly falls under the purview of gambling is crucial before digging further into the subject of legality. The phrase has a broad definition, and depending on the sort of gaming activity, it may or may not be legal.

It is important to remember that, depending on the country in which it is practised, any activity that is classified as "gambling" may be both lawful and criminal.

Gambling internationally

It's interesting to know that Indian nationals are not subject to any restrictions on websites relating to overseas gambling. However, there are problems with these sites' currency exchange. Each nation takes a unique stance on the legalisation of gaming. Others enforce a complete prohibition on these games, classifying them as immoral activities. Some nations view gambling as a kind of trade and business and permit it within their national borders.

Various forms of gambling in India

There are several games involved in gambling. The following game types in India determine the extent of gambling: 

  • Lotteries

One of the oldest types of gambling is the lottery. Regular lotteries are held by the state governments, and they are essentially all legal in these jurisdictions. The Lotteries (Regulation) Act of 1998 governs lottery events. A lottery is defined as "a scheme, in whatever form and by whatever name called, for distribution of prizes by lot or chance to those persons participating in the chances of a prize by purchasing tickets" in accordance with Section 2(b) of the Act. Under this Act, the federal and state governments may establish regulations for the operation of lotteries.

  • Betting on horse race

It is permitted in India to win the bet on horse racing events because it is regarded as a game of skill. Horse racing is a well-liked event in numerous states of India, including Bangalore, Hyderabad, Mumbai, etc. It is run by teams that are arranged into clubs. 

 The issue that emerged in the case of Dr. K.R. Lakshmanan v. State of Tamil Nadu and Anr. (1996) was whether horse racing is a game of chance or a game requiring a significant amount of talent. The Supreme Court came to the conclusion that these contests need extensive training and that the horses' endurance and speed have a significant impact on the likelihood of victory. The jockeys are also professionals. All of this lends credence to the claim that this game requires talent.

  • Gaming online

The excitement surrounding internet gaming has skyrocketed during the last few years. In India, online games like teenpatti and poker have grown in popularity. The question of whether Indian gambling regulations apply to online gaming is still up for debate. While some states have passed appropriate legislation to control online gambling, others have not yet done so.

  •  Prize-giving events

Prize competitions involve solving puzzles, which require using knowledge of how to construct or arrange a collection of letters, words, or figures. The Prize Competitions Act, 1955, which is applicable in several regions of India, governs these competitions. The Act establishes the guidelines for licence requirements, fines, and offences committed in the field of prize competitions. The Supreme Court explained the purpose behind the creation of this Act in the case of R.M.D. Chamarbaugwalla v. Union of India (1957), stating that the legislators intended for this provision to govern and supervise prize competitions of a gambling nature and that since some competitions heavily rely on the skills of those who do not harm the public in any way, these are not to be regulated.

  • Sporting events

In India, most sports betting is outlawed. The Indian Premier League has a huge fan base in our nation, and many people like betting on the games, which is against the law. However, sports betting is regarded as wholly legal in some parts of Northeastern India. Only a few states, like Sikkim, Meghalaya, and Nagaland, have laws that permit sports betting. The Information Technology Act, 2000, India's cyberlaws legislation, does not include any provisions on sports betting. These are covered in further detail.

  • Gambling is constitutionally permissible

The 1950 Indian Constitution gives state governments the authority to enact laws defining what constitutes permissible or unlawful gambling practises. Under Entry 34, read with Entry 64 of List II of the Seventh Schedule, the state governments have been given responsibility for the infraction. This suggests that, unless the Parliament uses its authority under Articles 249 or 250, only state governments may pass legislation governing "betting and gambling." Additionally, Entry 62 gives state governments the authority to pass laws governing the imposition of taxes on gambling and betting.

The legalisation or control of gambling activities is always fraught with controversy. Numerous proponents of gambling and businesses that profit from it are against the restrictions that federal and state laws have placed on these activities. These are regarded as going against the spirit of Article 19(1)(g), or the freedom to engage in any profession or business.

In a famous case from 1957 called State of Bombay v. R.M.D. Chamarbaugwala, the constitutionality of prize competitions was at issue. The petitioners asserted that prize competitions and lotteries are entitled to protection under Article 301 and that the Prize Competitions Act, 1955, violates the basic right contained in Article 19(1)(g) of the Indian Constitution. The State of Bombay argued that because prize competitions and lotteries violated public policy, they fell under the exclusion set forth in Article 19(6) and could not be viewed as beyond the Act's authority. The petition was denied because the Supreme Court determined that the reward competitions are of a gambling nature and cannot be viewed as trade or commerce.

Merits of Gambling:

Evidently, several countries have changed their stance on gambling from being against it to enforcing gambling laws around the globe. The gaming Act 51 of 1961 in South Africa, which outlawed practically all forms of gaming and betting, serves as a prime example. However, the nation assessed the Act's shortcomings as well as the benefits of licensing and regulating gaming. The following perceptions informed the adoption of South Africa's current National Gambling Act, 2004:

  • Gambling would lead to more employment possibilities.
  • It would promote economic expansion.
  • It would aid in reducing racial discrimination.
  • Similar to this, recent legislation in most nations has placed more emphasis on gambling regulation than on its outright ban.

Disadvantages of allowing gambling:

To discourage persons from participating in wager-related activities, Section 30 of the Indian Contract Act, 1872, was written. This clearly demonstrates the politicians' intention to discourage it among the populace. The reasons for adopting this strategy towards the gaming business are shown in some of the points below:

  • immoral game
  • game of greed
  • impact how well athletes succeed in sports
  • an increase in crime overall


Therefore, there is no simple answer to the question of whether gambling is legal in India. It is clear from the discussion above that the legal status of gambling differs depending on the game being played and the state's laws. The criteria for categorising games into games of skill and games of chance are also crucial in determining whether gambling activities are legal, as the majority of laws allow for the playing of games requiring talent but forbid games based only on luck. All the obstacles that make gambling a danger to the public might be eliminated with the help of an effective licencing system and monitoring procedures. The money that governments make from gambling might be invested in the growth of the country

"Loved reading this piece by Dikshita More ?
Join LAWyersClubIndia's network for daily News Updates, Judgment Summaries, Articles, Forum Threads, Online Law Courses, and MUCH MORE!!"

Tags :

Category Others, Other Articles by - Dikshita More