India has been struggling
hard to deal with issues of online gambling, online gaming and online
lotteries for long. Till now we have no dedicated online
gambling and gaming laws in India. This position has
become more complicated since the Supreme Court of India has refused
to decide about legality of online poker, online rummy and
online card games in India.
Recently the Indian
government has clarified about the Foreign
Direct Investment (FDI) in E-Commerce Sector of India. As
per the “Consolidated
FDI Policy Circular 2015” (pdf) (FDI Policy), FDI is
prohibited in lottery business including Government/private lottery,
online lotteries, etc and
gambling and betting
including casinos etc. Recently the Crime Investigation Department
(CID) of the Andhra Pradesh police had sought a ban
on the website of “Playwin” which had allegedly been
selling online lotteries banned in the state.
This episode has also
proved that online gaming, online gambling and lotteries websites are
not complying with the internet
intermediary compliances and cyber
law due diligence (pdf) requirements prescribed under the
Information Technology Act 2000. Similarly, almost all of the online
poker websites in India are violating
one or other laws of India. Although online gaming market in India is
booming yet regulatory
compliances cannot be ignored. It seems online gaming and
online gambling industry of India is not considering regulations
while conducting their businesses in India.
A disturbing trend of
"legal violations" is fast dominating the online gaming
industry of India. For instance, the fine line and distinction
between online gambling and
online gaming in India is not appreciated and understood by
online gambling and gaming enthusiastics of India. As a result they
are frequently
prosecuted in India for violating online gaming and online
gambling laws of India. Even technical mechanisms are also
used to curb such activities in restricted territories or zones so
that activities of one state may not violate the laws of other state
of India.
In the past, Kerala
refused
permission to Future Gaming Solutions India Private Ltd to
sell Nagaland lotteries in the state. Now a social worker had knocked
judiciary's doors praying for immediate ban on unauthorized and
alluring online lotteries. Promoted by other states within
Maharashtra, he contended that over 1,300 bogus online lotteries
under various strange names are operating here and ruining lives of
millions. A division bench comprising justice Bhushan Gavai and
justice Swapna Joshi issued notices to central and state governments
seeking their reply before court resumes after summer vacations.
See Online
Gambling Laws In India for more.
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