Gambling or Satta Laws and Regulations in India (2025)
Relevant Authorities and Legislation
Gambling in India is primarily governed by state legislation under the Constitution of India. While some forms of gambling are permitted under strict regulation, others are outright banned. Below are the key legislations and authorities:
- Public Gambling Act, 1867: Central legislation that prohibits operating public gambling houses, though its enforcement is largely dependent on state governments.
- Prize Competitions Act, 1955: Regulates prize competitions, including skill-based contests.
- Information Technology Act, 2000: Addresses online gambling, focusing on cybersecurity and data protection.
- Relevant State Laws: States like Goa, Daman and Diu, Sikkim, Nagaland, and Tamil Nadu have enacted specific gambling laws.
- Authorities: Regulatory bodies such as the Directorate of Lotteries, licensing boards in respective states, and police departments oversee enforcement.
Application for a Licence and Licence Restrictions
Obtaining a gambling license in India varies depending on the type of activity and the state:
Process of Application
- Sikkim: Operators must apply to the Sikkim State Lottery Department. They must submit a detailed proposal and adhere to guidelines.
- Nagaland: Under the Nagaland Prohibition of Gambling and Promotion of Online Games of Skill Act, 2015, applicants must showcase the games’ skill-based nature.
- Tamil Nadu: Applications are complex due to recent restrictions. Approval from local authorities is mandatory.
- West Bengal: Operators get licenses for lotteries under the West Bengal Gambling and Prize Competitions Act.
License Restrictions
- Skill vs. Chance: Only skill-based games are typically permitted.
- Scope: Licences are usually specific to certain activities, like lotteries or online poker.
- Fees: State-specific, ranging from INR 10 lakh to INR 1 crore annually.
- Amendments: States frequently revise guidelines, requiring periodic updates.
Online Gambling
Online gambling occupies a grey area in Indian law. Key considerations include:
Operators Located In India
- Compliance with the IT Act, 2000 is mandatory.
- Operators must obtain licenses where applicable, such as in Sikkim or Nagaland.
Operators Located Outside India
- Offshore operators targeting Indian users must adhere to FEMA (Foreign Exchange Management Act) rules.
- Close monitoring takes place on the use of INR for transactions.
Verification Process Under Online Gaming Rules
- KYC (Know Your Customer): All users must undergo identity verification.
- Data Protection: Adherence to data storage and privacy rules under the IT Act.
Enforcement Powers/Sanctions
Regulatory authorities possess significant enforcement powers:
- Penalties: Fines range from INR 50,000 to INR 10 crore, depending on the violation.
- License Revocation: Licences can be subject to suspension or cancellation for non-compliance.
- Case Laws: Examples include “Rummy vs. State of Tamil Nadu”, emphasizing the legality of skill-based games.
Questions and Answers
- Q: Who is liable under local law/regulation? A: Operators, intermediaries, and players, depending on the violation.
- Q: What enforcement actions are taken? A: Fines, revocation of licenses, and legal prosecution.
Anticipated Reforms
Significant reforms in gambling laws are in the offing:
- Central Legislation: There is a push for uniform regulation across states.
- Upcoming Amendments: Tamil Nadu and Karnataka are revising laws to address online gaming.
- Pending Litigation: Multiple PILs (Public Interest Litigations) seek clarity on skill vs. chance distinctions.
Satta / Gambling Activities in India
Gaming
Social and skill-based games are generally permissible, with restrictions in some states like Tamil Nadu and Karnataka.
Betting
Horse race betting is legal under specific regulations. Sports betting remains largely prohibited but is subject to ongoing reforms.
Lotteries
Regulated by states such as West Bengal and Kerala. Online lotteries are gaining popularity.
Casinos
Available in Goa, Daman and Diu, and Sikkim. Licensing and fees are state-specific.
Poker, Bingo, and Fantasy Sports
- Poker: Permitted as a skill-based game in states like Nagaland.
- Bingo: Rarely regulated but often allowed in private settings.
- Fantasy Sports: Legal in most states due to their classification as skill-based activities.
Social/Casual Gaming
Typically unregulated but subject to scrutiny when monetary transactions occur.
Skill Games
Explicitly allowed in states like Nagaland under specific laws.
Availability of Satta Licences in Specific States
- Goa: Casino licenses are available, subject to renewal fees.
- Daman and Diu: Fewer casinos, with stringent criteria.
- Sikkim: Licences for online gambling and casinos are prevalent.
- Nagaland: Exclusive focus on skill-based games.
- Tamil Nadu: Recent amendments restrict gambling activities.
Tax and Other Compulsory Levies
- GST: Applicable at 28% on gambling revenue.
- Income Tax: Winnings above INR 10,000 are taxed at 30%.
- State Levies: Additional fees and duties may apply.
Regulation of Satta /Gambling and Skill Gaming in India
The following table summarizes the entities regulating various types of gambling and gaming activities:
| Relevant Product | Who Regulates It in Online Form? | Who Regulates It in Land-Based Form? |
| Lotteries | State Lottery Departments (e.g., Sikkim, West Bengal). Lotteries have been specifically barred from the ambit of the State Gaming Laws and central laws and specific state-level lottery laws (jointly known as “Lottery Laws”) regulate them. Private lotteries, other than those allowed under a properlyconceded permit by the state government, are subject to the prohibition under the Bhartiya Nyaya Sanhita, 2023 (also known as BNS in short). | State Lottery Departments. Other than the text in the equivalent cell, states like Kerala, Punjab, Maharashtra, and others permit just physical lotteries. For state governments that arrange lotteries themselves, the state finance ministry or their assigned departments manage physical lotteries. |
| Casinos | State Governments (for example Sikkim, Goa). State-level laws in India regulate Casino games. Their digital variants also come under the scope of the same laws. Since casino games are games of chance, therefore they are struck by the bans of most “State Gaming Laws”, also known as state-level anti-gambling laws. Nonetheless, the state of Sikkim allows the bidding of casino games like blackjack and roulette by getting a license under the requirements of the “Sikkim Act”, also known as the Sikkim Online Gaming (Regulation) Act, 2008. This depends on the stipulation that the bidding of games can only take place within Sikkim. The Finance, Revenue, and Expenditure Department is the authority under the Sikkim Act. | State Governments (e.g., Goa, Daman and Diu). The state of Sikkim in north-east India, the union territory of Daman and Diu in the west, and the state of Goa in the west, control casino games in land-based form via state-oriented laws. In Goa, Daman, and Diu, the Goa, Daman, and Diu Public Gambling Act, 1976 (also known as the Goa Act) regulates casinos. The Sikkim Casinos (Control and Tax) Act, 2002 (also known as the Sikkim Casino Act) regulates Casinos in Sikkim. It was earlier the Sikkim Electronic Entertainment Games (Control and Tax) Act, 2002. The particular authorities for Sikkim and Goa are the Tourism Department in Sikkim and the Home Department in Goa. |
| Horse Race Betting | Turf Authorities. Horse race betting has been sensibly acknowledged as a game of skill and several State Gaming Laws also explicitly omit it from their embargos. However, this is subject to particular checks and balances. Since the majority of the regulatory laws are pre-Internet, there is no legal language or particular controller in most State Gaming Laws for Internet-based betting on horse races. Nonetheless, the race club conducting the horse race might enforce particular terms and conditions. The state of Sikkim allows sports betting according to a permit, given that it is only bidding within Sikkim. | Turf Clubs and Local Racing Authorities. According to the State Gaming Statutes, the particular state governments govern betting on physical horse races. States governing these include Telangana, Karnataka, Maharashtra, West Bengal, Tamil Nadu, and Delhi. The particular race club itself functioning may impose supplementary terms and conditions under the conditions of the permit allotted by the state government. Please see the relevant question below. |
| Fantasy Sports | Self-regulated (e.g., FIFS – Federation of Indian Fantasy Sports). [At the beginning, we make it clear that online fantasy sports are reckoned legitimately as a separate class that enjoys constitutional safeguard as a lawful trade and de-linked wholly from gambling and betting events/enterprises in India. Nevertheless, for the objective of sticking to this article’s setup, we have talked about fantasy sports in this segment.] In the majority of states, fantasy sports are functioning inside the immunity for games of skill in the State Gaming Statutes. However, there are certain exclusions to this. The state of Nagaland has an authorizing administration for online sports fantasy league games as laid down by the Nagaland Act. Rajasthan circulated a blueprint circular in 2022, viz the Rajasthan Virtual Online Sports (Regulation) Bill 2022 (also known as Rajasthan Bill), recommending to govern fantasy sports in Rajasthan under an authorizing administration, though the same is not effective yet. In Telangana and Andhra Pradesh, fantasy sports for winnings or stakes are banned. | Not applicable. The text of the matching cell is applicable other than the points on Rajasthan and Nagaland, which are pertinent exclusively to online fantasy sports platforms. |
| Poker | Nagaland Licensing Authority (for online skill-based poker). Other than the states of Nagaland and Sikkim which control skill gaming via an authorizing administration, the skill forms of poker are not explicitly banned under any other State Gaming Law. The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2016, (also known as the Nagaland Act) classifies poker as a skill game in Nagaland and necessitates a regulator to obtain a license for bidding it. For additional info, please refer to the question below. | Not explicitly regulated. In case of poker played in casinos, please consult the matching cells given above on casino gaming. Nonetheless, particular skill forms of poker (for example, Omaha Hold’em & Texas Hold’em) are not subject to the embargos laid down in the State Gaming Laws (refer to the matching row given below on “Skill games”). Hence, players can play these forms in real locations as well. |
| Bingo | Not explicitly regulated. Though there can be various setups in which players can play bingo, each of these variants (no matter if it is played land-based or online) would come either in the group of games of chance or lotteries. For the second one, they would face prohibition under the majority of State Gaming Laws. In case of lotteries, just a few states allow it under particular terms and conditions. Please see the matching row on “Lotteries”. | Local authorities, if organized publicly |
| Social Gaming | Not explicitly regulated. No permit is necessary for participating in free-to-play games in most of the states of India. Nonetheless, these games remain dependent on the due diligence necessities of an OGI (Online gaming intermediary) under the Online Gaming Rules. As laid down by the TN Act, online game suppliers (involving suppliers of free-to-play games) operating in Tamil Nadu will have to get a “certificate of registration” issued by the TNOGA. | Not regulated |
| Skill Games | Nagaland Licensing Authority, Sikkim Online Gaming Authority. There are particular exclusions for games of skill under most State Gaming Statutes and courts have also acknowledged bidding of skill games as a lawful commercial operation that has constitutional safeguards. No permit is necessary for bidding skill games in most states in India other than Nagaland and Sikkim, which have authorizing administration for skill games laid down by the corresponding Acts. | Not explicitly regulated. The text in the related section is applicable other than the detail on Nagaland, which would just be pertinent to online games. |
| Sports Betting | Not permitted (except horse racing) | Not permitted (except horse racing) |
| Online Gambling | Subject to IT Act and State-specific laws (e.g., Sikkim, Nagaland) | Not applicable |
The Constitution of India’s Role in Online Gambling and Public Gaming
The Constitution of India grants states the power to legislate on matters related to gambling under the State List in Schedule VII. This allows each state to enact its own laws regulating gambling and gaming activities, including online gaming. Public gambling faces prohibition under the Public Gambling Act, of 1867. Furthermore, several states have introduced specific legislation to address modern gaming concerns.
Sikkim was among the first states to regulate online gaming through the Sikkim Online Gaming (Regulation) Act, 2008. The Act permits online gaming, including games of skill and chance, under strict licensing and regulatory frameworks. Similarly, Nagaland introduced the Nagaland Prohibition of Gambling and Regulation of Online Games of Skill Act, 2016. This allows only skill-based online games like poker and rummy.
In contrast, Andhra Pradesh and Telangana have taken stringent measures to ban online gambling and certain online games. The Andhra Pradesh Gaming Act, 1974, underwent amendments in 2020 to criminalize online betting and gambling. Telangana amended its Gaming Act in 2017, imposing a complete ban on online gaming for stakes, citing concerns about addiction and societal harm.
The Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021, initially banned online gaming but faced legal challenges in court. The Information Technology (IT) Act, 2000, adds another layer of regulation, specifically targeting online platforms under Section 79, addressing intermediary liability.
The Self-Regulatory Body (SRB) model is getting promotions to standardize online gaming, ensuring responsible practices and user protection. These diverse laws and regulations highlight India’s evolving legal landscape on public gambling and online gaming. The challenge remains to balance regulation, technological growth, and safeguarding users’ interests.
What is the recognition of Satta and Poker under various state gaming laws in India?
- West Bengal: Poker falls in the category of a game of skill under the West Bengal Gambling and Prize Competitions Act, 1957. The state permits poker for stakes, making it one of the few regions where poker enjoys legal recognition.
- Nagaland: The Nagaland Prohibition of Gambling and Regulation of Online Games of Skill Act, 2016, explicitly recognizes poker as a skill-based game. Operators obtain licenses for conducting online poker legally.
- Gujarat High Court: In 2017, the High Court of Gujarat ruled poker as a game of chance, classifying it as gambling and thus prohibiting it.
What is the Supreme Court’s observation on horse race betting in India?
The Supreme Court of India, in its landmark judgment in Dr. K.R. Lakshmanan v. State of Tamil Nadu (1996), clarified the legal status of horse race betting in India. The Apex Court distinguished it from games of chance. The Court ruled that horse racing is a game of skill rather than pure luck. It recognized the role of various factors like the horse’s training, jockey’s expertise, and environmental conditions. This ruling legitimized betting on horse races as a legal activity under the Public Gambling Act, of 1867. However, it is subject to the condition that it takes place within authorized turf clubs.
The Karnataka High Court reaffirmed this perspective in subsequent cases. It upheld that betting on horse racing through licensed bookmakers and authorized clubs is permissible under the law. The judgment emphasized that horse racing involves a substantial degree of skill. This distinguishes it from traditional gambling activities prohibited by the Act.
In West Bengal, the Royal Calcutta Turf Club (RCTC) has been at the forefront of horse racing activities. Its operations have been governed by the principles established in the Lakshmanan case, ensuring compliance with legal requirements. The RCTC is a significant player in promoting horse racing as a sport and operates under strict regulatory frameworks to facilitate lawful betting.
These judgments collectively underline the judiciary’s nuanced approach in India. Here games of skill like horse racing have legal acknowledgement. They promote a balance between regulation and recreation while ensuring adherence to legal frameworks.
DGGI’s Role in Blocking Satta and Online Gaming Sites Evading Taxes
The Directorate General of GST Intelligence (DGGI) now holds the power to block online gaming sites evading taxes under the GST framework.
- High-Risk Sector: Online gambling has been flagged as a high-risk sector due to substantial revenue loss from tax evasion and unregulated operators.
- Regulatory Enforcement: DGGI collaborates with technology and enforcement agencies to identify and block gaming platforms avoiding GST compliance.
- GST Liability: Sites conducting online gambling are required to pay 28% GST on the full bet amount as mandated by recent tax reforms.
- Impact: The measure aims to curb illicit satta or gambling platforms and boost government revenue collection.
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