Legislative analysis of gambling laws pertaining to Nagaland,

Sikkim, Goa and Daman and Diu, Meghalaya, West Bengal.

Brief Introduction Pg. 2

Nagaland Pg. 3
Sikkim Pg. 3-4
Meghalaya Pg. 5
Goa, Daman and Diu Pg. 6-7
West Bengal Pg. 7

Case Laws Pg. 8

Brief introduction:

After the promulgation of the Constitution of India and its coming into effect on 26 January 1950,
the issues pertaining to gaming were divided. Betting and gambling were listed under Entry 34
of the State List (i.e., List II of the Seventh Schedule). This means that only the state
legislature has the power to make laws pertaining to betting and gambling.

In addition, the state legislature has the power under Entry 62 of the State List to make laws
pertaining to the taxation of betting and gambling.

The gaming industry of India can broadly be classified into the following:

1) Lotteries(Union List) Lotteries (Regulation) Rules 2010

2) Horse Racing Considered game of skill under the case

(Union List) of Dr. KR Lakshmanan v. State of Tamil
Nadu

3) Prize competitions(Union List) Prize Competitions Act 1955

4) Game of skill It falls within the purview of the State list,

5) Game of chance therefore dependent on state legislation.

Within the demarcations as aforementioned regarding the gaming industry of India, the
below-listed states will be analyzed legislatively utilizing said demarcations as well as the
relevant law of the state.

a) Nagaland

Games of skill:

The government of Nagaland under the Prohibition of Gambling and Regulation and
Promotion of Online Games of Skill Act 2015 (the Nagaland Act) has defined games of
skill as:

Games of skill shall include all such games where there is a preponderance of skill over
chance, including where the skill relates to strategizing the manner of placing wagers or
placing bets or where the skill lies in team selection or selection of virtual stocks based
on analyses or where the skill relates to the manner in which the moves are made,
whether through the deployment of physical or mental skill and acumen.
 All games enumerated in Schedule A of the Nagaland Act will be classified as
games of skill. Schedule A includes games such as chess, sudoku, quiz, bridge, poker,
rummy, nap, virtual sports, virtual games like monopoly or racing, and virtual fantasy
games

Games of chance:

Under section 2(4) of the Prohibition of Gambling and Regulation and Promotion of
Online Games of Skill Act 2015 (the Nagaland Act), "Games of chance" shall, subject to
the provisions of sub-section (3) above, meaning all such games where there is a
preponderance of chance over skill.

b) Sikkim:

Games of skill:

Sikkim has taken the initiative of legalizing online sports betting within the state, with the
promulgation of the Sikkim Online Gaming (Regulation) Act 2008. Under this Act, a
license for placing bets on sports games such as football, cricket, lawn tennis, chess,
golf, and horse racing can be issued.

It was passed on 28th June 2008 by the Sikkim Legislative Assembly with the dual
object of controlling and regulating online gaming through electronic and non-electronic
formats and imposing a tax on the same within its territory.

The Sikkim Online Gaming (Regulation) Rules, 2009 has been subsequently enacted
and the same has been amended from time to time.

As defined under section 2(d) of the Sikkim Online Gaming (Regulations) Rules, 2009 it
states that "Online Game" means any games of chance or a combination of skill and
chance, including but not limited to Poker, roulette, blackjack or any game, played with
cards, dice or by means of any machine or instrument, as may be prescribed from time
to time;
 Amendments to Sikkim Online Gaming (Regulation) Act, 2008:

The Sikkim Online Gaming (Regulation) Act, 2008 was amended on August 19, 2015,
restricting the offering of "online games and sports games" under the licenses issued
under the said Act to the physical premises of the game parlors within the geographical
boundaries of the State of Sikkim through intranet gaming terminals. Initially, the wording
of the Sikkim Online Gaming (Regulation) Act, 2008 envisaged that the license shall
allow the licensee to offer its games across India without restricting it to the territory of
Sikkim.

Games of chance:

The Sikkim Casino Games (Control and Tax Rules), 2002 authorises the Sikkim
Government to grant licenses to individuals and businesses that are interested in
operating a casino within the State.

Also, the Sikkim Regulation of Gambling (Amendment) Act, 2005 gives the Sikkim
Government the authority to authorise gambling on certain days and to make certain
gambling houses legal at their own discretion by way of grant of license.

Amendments to the Sikkim Regulation of Gambling Act, 2005

The state of Sikkim has also legalized gambling by enacting Sikkim Regulation of
Gambling (Amendment) 2005. The Sikkim Regulation of Gambling (Amendment) 2005
authorizes the State government to notify the specified areas where permission can be
granted for running of casinos for games like Roulette or Blackjack on payment of a
specified fee

c) Meghalaya:

Games of chance:

Section 2(b) of the Meghlaya prevention of gambling act 1970 states that,

“gambling” or “gaming” means a play or game for money, including betting and wagering, by
which a person intentionally exposes money to the risk or hazard of loss by chance;
Games of skill:

Section13(1) of the Meghalaya prevention of Gambling Act, 1970 states that Nothing in this Act
shall apply to any game of mere skill wherever played:

(2) Without prejudice to the provisions contained in sub- section (1), the Government of
Meghalaya may , by notification, exempt any game or sport from the operation of
this Act in respect of which it is satisfied that, having regard to its nature, the skill
involved and the customs connected therewith in vogue in the community,
nothing connected with such game or sport is likely to encourage gambling or
otherwise defeat the objects of this Act.

Amendments to the Assam Amusements and Betting Tax Act, 1939 within the
purview of the Meghalaya Prevention of Gambling Act, 1970:

Section 21 of the Meghalaya Prevention of Gambling Act, 1970 states that The Assam
Amusements and Betting Tax Act, 1939, shall stand amended as follows:-

1) For the word ‘Assam’ wherever it occurs, the word “Meghalaya” shall be substituted;
and for the words “State Government”, Government of Assam”, and “State Government
of Assam”” wherever they occur, the words “Government of Meghalaya” shall be
substituted

2) For sub-sections (2) and (3) of section 1, the following sub-section shall be
substituted, namely:- “(2) Is extends to the whole of Meghalaya except Shillong.”

3) In section 14, clauses (3A) and (7) shall be omitted.

4) In section 18, sub-sections (3), (4) and (5) shall be omitted.

d) Goa and Daman and Diu:

Games of skill:

Section (13) of the Goa, Daman and Diu Public Gambling Act, 1976 states Saving of
games of mere skill.— Nothing in this Act shall be held to apply to any game of mere skill
wherever played.

This states in its essence that games where there is a preponderance of skill will not be
afflicted by this law such as Horse Racing or Virtual sports.
 Games of chance:

The state of Goa has, however, allowed gambling since 1996, after the Goa, Daman and
Diu Public Gambling Act, 1976 was amended to allow card-rooms in offshore vessels
and slot machines in five star hotels subject to the prior approval and permission of the
state government on payment of a specified recurring fee

Section (2) of the Goa, Daman and Diu Public Gambling Act, 1976 states that “gaming”
includes—

(a) wagering or betting and includes wagering or betting on the digits of a numerical
figure arrived at by manipulation in any manner whatsoever, or on the order of the digits,
or on the digits themselves or on pictorial representations,

(b) any transaction by which a person in any capacity whatever employs another person
in any capacity whatever or engages for another in any capacity whatever, to wager or
bet with any other person,

(c) the collection or soliciting of bets, receipts or distribution of winnings or prizes in

money or otherwise in respect of wagering or betting or any act which is intended to aid
or facilitate wagering or betting or such collection, soliciting, receipt or distribution, but
does not include a lottery;

Amendments to the Goa, Daman and Diu Public Gambling Act, 1976:

Inserted by the Amendment Act 11 of 1992:

Section 13A. Authorised Game.— (1) Notwithstanding anything contained in this Act, the
Government may authorised any game of electronic amusement/slot machines in Five
Star Hotels 27{and such table games and gaming on board in vessels offshore as may
be notified} subject to such conditions, including payment of such recurring and
non-recurring fees, as may be prescribed.
 e) West Bengal

Games of skill:

West Bengal is the only state in India which has specifically exempted card games from the
definition of gambling.

The West Bengal Gambling and Prize Competition Act, 1957 (‘the West Bengal Act’) has
specifically exempted poker, rummy, and other card games from the ambit of gambling.

This exemption of card games of skill was done in 1979 when the West Bengal government
added the definition of gambling to the West Bengal Act through the West Bengal Gambling and
Prize Competition (Amendment) Act, 1979.

Section 2(b) of the West Bengal Act now defines ‘betting or gambling’ to include wagering or
betting but exempts lotteries or games of cards like poker, rummy, bridge and nap from the
ambit of gambling.

Section 12 of the West Bengal Act states that,

Nothing in this chapter shall apply to any game of mere skill wherever played: Provided thai
when such game is played in a public market, fair, carnival or street or in any place where the
public may have access.

Games of chance:

As aforementioned, any gambling or betting that occurs with exemptions of Horse racing,
lotteries or games of cards like rummy, poker from the legal implications of it associated as a
gambling activity.
Case Laws:
Dr. KR Lakshmanan v. State of Tamil Nadu
State of Andhra Pradesh v. K
Satyanarayana
State of Bombay v. RMD Chamarbaugwala
R. M. D. Chamarbaugwalla v. Union of
India
Krishna Kumar and Anr. v. State of A.P
Gaussian Network case
The SC had held that horse racing was a
game of skill and playing for stakes in a game
of skill was not illegal.
The court has laid down that a game of
chance is where the element of chance
predominates over the element of skill,
whereas a game of skill is where the element
of skill predominates over the element of
chance. The game of Rummy was
considered a game of skill hence it did not fall
under the legal purview of gambling.
Betting on games of skill does not constitute
‘gambling’. Unlike games of chance, games
of skill have the protection to trade and
occupation under Article 19(1)(g) of the
Constitution of India
The SC concluded that competitions that
had skill as the main deciding factor of the
outcome of the competition would not
come within the ambit of the Prize
Competition Act, 1955.
The Court held that since games of skill are
expressly not equated with gambling, it does
not matter how much the operator earns from
them.
The District Court held online poker to be a
game of chance, and concluded that
wagering on games of skill, where the online
companies take a cut is illegal. This
judgement explicitly equated an online poker
site to a common gaming house.