European Gaming Lawyer magazine Spring 2014 | Page 41

of skill despite there being an element
of chance. Whether a game is of chance
or skill is usually a question of fact to
be decided on the facts and
circumstances of each case.5
Thus, if structured carefully, it would
be possible to legally offer games which
satisfy the test of skill versus chance
through the physical as well as virtual
medium (including internet and mobile),
throughout India.
With respect to casinos, Goa allows
licensed casinos in five star hotels and on
board offshore vessels. In fact the casinos
give a boost to the ever increasing tourist
population in Goa. Daman & Diu6 and
Sikkim7 also allow casinos to a limited
extent under a license.
Online Gaming
The State of Sikkim is so far the only state
in India which has enacted a law for online
gaming and sports betting. ‘The Sikkim
Online Gaming (Regulation) Act, 2008’ was
passed with an object of controlling and
regulating online gaming through electronic
or non-electronic formats, and to impose a
tax on such games, in the State of Sikkim.8
An interested person can obtain a “license”
for the purpose of conducting online
games such as such as Roulette, Black-jack,
Pontoon, Puntobanco, Bingo, Casino Brag,
Poker, Poker dice, Baccarat, Chemin-de-fer,
Backgammon, Keno and Super Pan 9 and
sports betting, including its organization,
management or promotion or negotiation or
receipt of bets. Further, a licensee can obtain
the prior approval of the State government
of Sikkim to offer any other /addition online
games under the license.
Speculation is rife that other states such
as Goa may also be contemplating enacting
laws to regulate online gaming.
However, new guidelines9 for
intermediaries had been notified under
the Information Technology Act 2008,
owing to which ISPs may increasingly
block gaming websites suo motu or on
notices from the Department of Telecom or
similar authorities. The guidelines require
the intermediaries like ISPs to observe due
diligence and include terms in their user

agreements discouraging the users to carry
out any activity in relation to or encouraging
gambling. Therefore, even if an activity is
considered legal in a state, under the federal
IT law, one may continue to run the risk of
ISPs blocking websites.
Lotteries
Lotteries, on the other hand, have been
expressly excluded from the purview
of the Gaming Legislations and are
governed by the central law10, Lotteries
(Regulation) Act, 1998 under which the
Lottery (Regulation) Rules 2010 and state
specific rules have been framed. The law
allows the state governments to organize,
conduct or promote a lottery, subject to
the conditions specified therein. The state
governments may appoint an individual or
a corporatation as a “distributor or selling
agent” through an agreement to market and
sell lotteries on behalf of the organizing
State. However, lottery is banned in certain
states in In