The Public Gaming Act, 1867
The Act is a punishment for public gambling as well as the maintaining a ‘common gaming establishment’. The Act also allows states to pass regulations for public gambling within their regions. The legislation governing penality in the respective states have been revised to conform with their policies regarding gambling. But, this law does not have any direct effect on gambling online unless an expansive interpretation is given to the definition of a common gaming house in order to encompass forums that are virtual.
The Indian Contract Act, 1872 (ICA)
The ICA is a codified umbrella law that regulates all commercial contracts in India. According to the ICA it is stated that a contract for wagering is one that can’t be executed. The Act stipulates that “Agreements through wagers are null and void and no action can be filed for the recovery of any prize claimed to have been gained from any wager or given to any person to adhere to the outcomesitus juditogel from any other game, or occasion on which a wager is placed’. Lottery, gambling, and other prizes have been deemed to be gambling contracts that are therefore void and ineffective. While a contract for wagering isn’t illegal however, it is not enforceable in an audiencia or court. Therefore, courts are not able to consider any action that is arising out of the wagering contract.
Lotteries (Regulation) Act, 1998
The Act creates a framework for organising lotteries throughout the nation. In this Act the state governments are authorized to support and prohibit lotteries within their area of jurisdiction. The Act additionally outlines how lotteries should be conducted as well as the punishment for violations of its rules. Lotteries that are not permitted by the state are an offense in the Indian Penal Code. Some states that are not lottery-playing states such as Gujarat as well as Uttar Pradesh, have prohibited the sales of other state-owned lotteries in accordance with this Act.
Indian Penal Code, 1860
Section 294A focuses on the operation of a the lottery office. It states that anyone who keeps any office or space to draw any lottery that is not an official State lottery or one approved through the State Government, is punished by imprisonment of any type for a period which could extend to six months or with a fine or both.
Whoever publishes any proposition to pay any sum or to deliver any product or to perform or abstain from doing anything to benefit anyone, in connection with any occasion or event that is related or relating in connection with the draw of any lot, ticket number, or other figure for any lottery will be penalized with a penalties that may reach one thousand rupees.
The law that governs gambling also applies for online gaming. Every gambling contract is considered to be bets and it is therefore not possible to enforce these contracts according to the ICA as described above.
As we have mentioned earlier that the lottery online is the most well-known kind of gambling on the internet in India. The majority of companies that market and distribute lotteries sponsored by the state government on the internet aren’t permitted to offer their services in states that prohibit lotteries. Most of the time, these distributors and marketers limit their online offerings to those who are residents of states where lottery participation is legal. In spite of the fact that there has not been any reported incident of violation from any of the companies that promote online lotteries and lotteries, the majority of these companies (as to protect themselves) require an agreement from their customers regarding their place of residence.
There have been cases where one state has prohibited the lottery in other states as well as lotteries online. In a recent instance, it was the Karnatka High Court upheld the decision of the Karnataka government to declare itself an “lottery-free zone” by banning lotteries from all other states, which includes lotteries online under the Lotteries (Regulation) Act 1998. The state government, in this instance ordered the closing of kiosks and terminals that sell online lotteries.
Enforcement of foreign jurisdictions
When websites are run and managed by a person outside India It could be difficult for Indian authorities to make any order to shut them down or block their access to them without relying on its blocking powers within the ITA. Authorities have nothing to worry about since Indian law on foreign exchange are not able to allow remittances from out of India to gamblers like purchasing lottery tickets, soccer pools or sweepstakes. Therefore that a gambling site located in outside India with the intention of receiving money from India is not able to do so via legal channels.