Friday, January 31, 2025

Is Poker Legal in India? A Detailed Look at India’s Poker Laws

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Among all online games offered, the Indian poker market is expected to grow at 16.91% CAGR from 2024-32, reaching a market size of 346.01 billion USD in 2032. This data reiterates the growth and popularity of poker games in India.

With multiple platforms allowing players to access games from mobile apps, people have the option to access poker games anytime and anywhere. This is a positive note for platforms that offer poker games, allowing them to increase their market reach.

However, just like every business, the online Indian poker market also comes with multiple laws that govern the operations of the poker platforms.

Understanding India’s Legal Landscape for Online Gaming

Being recognized as a game of skill has given online poker a boost in the Indian landscape. The main reasons that have added up to this is the way players have to take strategic calls, manage resources, and read their opponents.

At the central level, The Public Gambling Act of 1867 governs the legality of poker. However, as per the Constitution, poker and similar games fall in the State List, i.e., under the jurisdiction of specific states. 

Thus, individual states are free to allow their residents the right to play poker. This has led to the various types of poker games being popularized online.

State-Specific Poker Laws

Since online games fall under the purview of the states, the legality faces norms imposed by the specific state. To further elaborate, these can be understood as below:

States Where Poker Is Legal

A few state governments have legalised online poker games. The most notable among these are:

  • Karnataka: amendments to the Karnataka Police Act, 1963, do not place any restrictions on online gaming.
  • West Bengal: poker is not listed under the West Bengal Gambling and Prize Competitions Act, 1957, and, thus, it does not require legal intervention from the police.
  • Nagaland: to operate in Nagaland, gaming platforms have to get a license as a “Skill-based game”.

States Where Poker Is Prohibited

The following Acts render any game that is played for stakes null and void:

  • The Assam Game & Betting Act, 1970, 
  • Telangana State Gaming (Amendment), 
  • Odisha (Prevention of) Gambling Act, 1955, 
  • The Amendment to the Andhra Pradesh Gaming Act, 1974, 
  • Ordinance and High Court Judgment in Gujarat, 2017

As a result, people from the states of Assam, Andhra Pradesh, Telangana, Odisha, and Gujarat are forbidden from participating in poker games.

States with Ambiguous Poker Laws

In some states such as Maharashtra, there are no specific laws in regard to online games of skill such as poker. Thus, the various types of poker games in these states are subjected to the Public Gambling Act of 1867, as per the central government’s rules.

Legal Challenges for Online Poker

Two Indian states offer gaming licenses to operators for online skills-based games such as poker, rummy, etc. This helps ensure that the platforms enjoy the following:

  • A recognition of legitimacy.
  • Legal protection.
  • Access to payment services.

When it comes to operating on a national scale, Indian poker platforms that operate online have to take things up on a state-by-state basis. Thus, the legal teams need to make a deep dive into the local laws to ensure that online gaming is not against regulations.

Court Judgments Shaping Poker Legality

Due to being listed as a state subject, multiple High Courts in India have provided judgment on the legality of online poker games. 

Notable Legal Cases in India

Some of the biggest judgments in favor of online poker games are:

Andhra Pradesh vs. KS Sathyanarayana AIR 1968 

In a landmark judgment given by the Supreme Court, rummy and poker games were held as games of skill.

Junglee Games India Private Limited vs. the state of Tamil Nadu

A clear statement was given by the Madras High Court stating rummy and poker games called for a certain level of skill. Thus, it did not violate any laws as per the Public Gambling Act of 1867.

Indian Poker Association & Anr. vs. The State of West Bengal & Ors.

In response to police action, the High Court of Calcutta stated that poker is not listed under the West Bengal Gambling and Prize Competitions Act, 1957. As such, a prohibition cannot be inferred and there are no restrictions on people conducting online games, namely poker.

DM Gaming Private Limited vs the State of UP

In response to the permission being denied to operate a gaming unit in Agra, a writ petition was filed under Article 226. The Allahabad High Court has stressed the fact that Poker, Rummy, and similar games involve skill. Thus, the City Commissionerate has no grounds to deny permission.

Impact of Supreme Court Decisions

A 2017 ruling by the Supreme Court has upheld online poker and similar games as a game of skill. Thus, no company or player can be barred under the Public Gambling Act of 1867. This has reiterated the stance of the Apex Court with regard to online gaming. 

Challenges and Opportunities for Poker in India

When operating in the Indian market, platforms that offer multiple types of poker games have to keep up with the regulatory norms to enjoy the scope for growth.

Regulatory Challenges

The norms set by the government vary from state to state and are subject to periodic changes. Thus, operators have to stay appraised of the laws and regulations. To add, they have to ensure compliance with local laws for every state they operate in.

Opportunities for Growth

Being recognized as a game of skill by various High Courts as well as the Apex Court is a mark in the favor of the online gaming portals. This can also be an opportunity for platforms to incorporate the other variations of Poker and not stay limited to Texas Hold’em. 

Further, the platforms have the chance to reach out to players in states where there are no specific rules on the legality of poker. All the platforms need to do for these states is stay appraised and comply with the Public Gambling Act of 1867.

How to Play Poker Legally in India

Unless a financial transaction takes place, there are no grounds to question the legality of playing poker in some Indian states. In others, the platform needs to obtain a gaming license from the commissionerate. This is a subject that varies from state to state. 

Tips for Playing Poker Legally

In many states, the Poker platforms operating legally have to carry a gaming license. Further, they also need to meet the local norms and stay within regulatory bounds. 

Players can check the licenses of the platforms they check out for their next poker game to ensure their legal compliance.

Taxation on Poker Winnings

Players who win in Poker have to pay a flat rate of 30% as Income Tax to the responsible authorities.

In Conclusion

While staying abreast of the legal norms can be tricky when every state has its own rules, the main law that Indian poker platforms need to follow is the Public Gambling Act of 1867. Since it is implemented by the Central Government, by complying with this law the Indian poker companies can offer online poker games in states with no or ambiguous laws. 

Further, the companies need to be aware of the states where offering online “Games of Skill” is a strict violation of local laws. By doing this, Indian poker companies can stay aboveboard in their operations and attract more players by boosting their faith in the platform.

 

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