There are two typical venues for casinos in the United States – Indian reservations and commercial casinos. Each comes in varying sizes among the groups. There are also differences within the class inside certain states that have different rules for reservations and casinos on state land.

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Indian casinos are always located on reservation land. The land often belonged to the tribe for generations. In some instances, Native Americans put the land into a trust and asked for the U.S. Department of Interior to declare the land sovereign to a tribe.

Sikkim: The Sikkim Casino Act read with Sikkim Casino Games Commencement (Control and Tax) Rules, 2007 (“Sikkim Casino Laws”) also prescribe a licence regime for casino games in five-star hotels in the State of Sikkim. The Sikkim Act covers certain casino games such as roulette, casino brag, and blackjack. Conclusion on Online Casinos and Gambling. As discussed, though online casinos are not yet allowed as per The Public Gambling Act, 1867, there are too many loop holes in the Indian Governmental betting laws. With a growing middle class and youth, a huge population and offshore casino giants are looking to make a stand in India.

Commercial casinos are located in places specifically approved by the state legislature or voters. In many states, this means on a boat on or near a body of water. Some jurisdictions permit casinos only in tourist areas. This may include historical mountain communities or beaches. Others only permit gambling at racetracks or assign one license to a specific geographical area.

There are two reasons a state may not have any Indian casinos. Some do not have any reservations. The other reason is that the state has not reached a compact with tribes within the border. Georgia and Tennessee are examples of the former. Utah, South Carolina, and Alaska are examples of the latter.

The Indian Gaming Regulatory Act requires one of two situations to occur before a reservation may offer gambling. The type of gambling that the tribe would like to offer must already be legal in the state. In that case, the version of gaming may be spread without limitations or taxes. Examples of this often include bingo or raffles. If a state has legal horseracing or casinos available by commercial licenses, the tribes may also offer this type of gaming.

The other scenario involves a gaming pact with the governor of a state. In this situation, tribes propose a tax rate and set of games they would like permitted. The governor can decide whether or not it may happen. This may require approval by voters or the state legislature. In this situation, tribes often pay taxes to the government because the activity has a monopoly. The state government has the leverage to require this as part of the gaming pact.

USA Casinos – State Laws

For more information about specific gambling laws for each state, visit our State Casino Laws page.

• State Legislation – The differences between the types of games on reservations and at commercial casinos depend on the state. If the state permits commercial casinos, tribes may offer the same games. There are instances where tribal casinos offer more games. California, Washington, Minnesota and North Dakota are examples of this. That is because some card games are legal outside reservations but the Native American tribes created compacts to expand the offerings.
• Game Variations – The most common games added to reservations are slots and video poker. This may include video versions of table games that card clubs cannot spread. In some circumstances, gaming outside reservations is limited to bingo, horseracing, and raffles. In this case, all table games and poker are typically offered on reservation land, assuming a gaming compact has been reached.
• Video Poker Machines – There may be some differences between video poker machines offered on a reservation when compared to commercial casinos. Indian casinos may not spread typical class II machines that are commonly found in Nevada, Atlantic City, and regional commercial gaming markets. Some Indian casinos that have internal regulators may opt to offer class III machines. These may not be totally random when it comes to cards and numbers.This means that the cards or symbols dealt to players does not resemble a true deck or whatever it is meant to represent. The machine has a level it is set to return and does so. A player that is dealt four of a kind could discard it and receive four of a kind on the current hand or next one to help maintain the set payout on these devices. This is also common in backroom casinos in truck stops and bars. This is why one may find unusual video poker and real money keno machines on a reservation that are not carried by commercial casinos.
• Payouts – The payouts at tribal casinos are not necessarily the same as commercial ones, even between those located in close proximity. Different reservation casinos may also offer different payouts. This can vary due to the rules of the game. For example, one casino may hit soft 17 at blackjack and another could stand on it. Video poker pay tables may be different. Some may use class II machines, even if they are not required to do so. Others may choose to spread class III devices to lower variance.

Each Indian casino’s management team is different. The tribe is typically the sole beneficiary of the profits, however, this is not always the case. Some large tribal casinos opt to enter into management contracts with experienced commercial gaming operators. Examples of these types of companies include Caesars Entertainment with casinos like Harrah’s Cherokee and Station Casinos like the Graton Resort & Casino.

Tribal casinos and commercial casinos can vary greatly in size. Some may be no larger than a convenience store or bar. Others may be lavish resorts with full amenities. There are typically no state laws that restrict the size of a tribal casino or resort. The large ones tend to be in heavily populated areas. Rural casinos are often on the smaller size, especially if there is competition. In rare occasions, a casino may not be permitted to build a hotel if there are already enough rooms in the local market when it is developed. This restriction is never found at tribal casinos.

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Native American casinos often use branding that is related to the tribe. This may include the name of the tribe or a part of its culture. Casinos and connected hotels may offer a museum of sorts to tell its rich history. There may also be some games within the casino that share this type of branding.

Casino In India

Do you love poker? Or do you dream of opening your own casino? Do you love betting?

But are you wondering if it is legal in India?

If you answered yes to any of the above questions, read on. This post is just for you.

There are different forms of gambling- one can go to a casino or can play those games online; one can play card games like poker, rami, teen patti, etc. It is very difficult to gauge as to which of these practices are legally valid and which are not. What exactly are laws regarding gambling in India?

The Public Gambling Act of 1867 was passed by the British, 150 years back, prohibiting gambling. However, this Act is still prevalent in India. Even the penalty is not revised, it is approx. 200 rupees or 3 months of imprisonment or both. Pakistan chose to not enforce this law in their country after partition. This Act has been amended over time, however, it is still very vague and unclear.

Section 12 of the acts read as-

“12. Act not to apply to certain games. Nothing in the foregoing provisions of this Act contained shall be held to apply to any game of mere skill wherever played”.

Cricket being a game depending upon the skill is not covered within this definition. But isn't poker also a game of skill? This definition has been very vague. In 1996, Supreme Court of India clarified the definition and stated that

'The competitions where success depends on a substantial degree of skill are not “gambling” and despite there being an element of a chance if a game is preponderantly a game of skill it would nevertheless be a game of “mere skill”. However, even after this definition, it was not clear what games are not included within the ambit of “mere skill.”

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Poker is one of the games which lies in the grey area. Indian government has banned the games like teen patti (flush) however, on the other hand, playing rummy is not punishable. In 1968, the Indian judiciary declared rummy to be a skilled game. The Court ruled that to expertise rummy one has to memorize the fall of the cards, thus it could not be said that it is entirely based on luck or chance.

Thus, the Act in itself is unclear, and the scope of Act is dependent upon judiciary interpretation. The Act allows gambling by sanctions. Most of the lotteries have been legalized through these sanctions.

In the next section, I have discussed the state legislation regarding gambling. As per Indian Constitution gambling comes within State subject, however, the aforementioned central Act is applicable in all the States which do not have any specific gambling laws.

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Various State Legislations that governs gambling practices

Seventh Schedule Entry 34 List II of the Indian constitution gives the power to State government to decide the laws regarding gambling. It can prohibit or permit gambling in their state. Due to this liberal law various state have a different policy regarding various gambling games. Moreover, there are different approaches for different kind of games.

Laws in Nagaland

Nagaland has recently accepted and passed The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Bill, 2015 which prohibits any form of gambling in the state. However, even this bill lives a scope of “Games of Skill”. But to bet on these games online, the organization needs to take a license from the State Government. If anyone is found conducting illegal business, i.e. bidding without any license, the person would be liable for a fine of Rs. 20 lakhs which would be followed by an imprisonment of 6 months if not remedied further.

Laws in Maharashtra

In Maharashtra, gambling is prohibited by the State government. Bombay Prevention of Gambling Act, 1887 was passed by the government to regulate gambling practices in the state. However, section 13 of the act leaves a scope of games of mere skill. Section 3 of the Act leaves the scope of a horse race and dog races however race course needs to get a license from the state government.

Laws in Goa

In Goa gambling is permissible. Section 13A of The Goa, Daman and Diu Public Gambling Act, 1976 permits gambling in Goa, Daman and Diu however hotels need permission from the state and they also have to pay a recurring and non-recurring fees for the same. The Act prohibits common gaming house in Goa, Daman and Diu. The person who opens a common gaming house can be imprisoned up to 3 years and can be liable for a fine of 5,000 rupees. The similar punishment extends to the individual who is found gaming in common gaming house.

Online Casino Rules In India Government

Laws in Sikkim

Sikkim has liberal laws compared to Maharashtra. The Sikkim Regulation of Gambling (Amendment) Act, 2005, permits the state to give license to an individual who is interested in operating gambling and to authorize some gambling house. The State has through Sikkim On-line Gaming (Regulation) Rules, 2009, made games like Roulette, Black Jack, Pontoon, Punto Banco, Bingo, Casino Brag, Poker, Poker Dice, Baccarat, Chemin-de-for, Backgammon, Keno, and Super Pan 9 legal. These games can be legally played online however, the operator needs to get a license from the State government. The rules also specify that the games have to be safe, secure and fair.

Online Gambling Regulations

Indian law clearly prohibits gambling in an online platform. It is regulated by Information Technology Act of 2000. The Intermediary Guidelines (Rules) 2011, published under this Act regulates gambling practices by intermediaries, which includes telecom service providers, network service providers, internet service providers, web-hosting service providers, search engines, online payment sites, online-auction sites, online-market places and cyber cafes. Section 3(2)(b) of the said Rules, prohibits any practice which is related to or which encourages laundering and gambling.

The Public Gambling Act of 1867 does not talk about online gambling.

One option, an individual has is to bet on online websites Bet365 and Dafabet which are hosted in international jurisdictions. These websites allow deposit in Indian currencies. As these websites have their offices in foreign countries like the UK, they are not governed by Indian laws relating to online gambling. However, there is still a risk of illegal money transaction. The Payment and Settlement Act, 2007 permits Reserve Bank of India to regulate all online and electronic mode of transaction. They have the authority to make rules and regulations regarding all the payment procedure.

Along with the above-stated act, Foreign Exchange Management Act (FEMA) 1999 regulates transactions. However, it regulates international transactions. Thus, if an individual is trying to make an international transaction, other than in Indian currency, it needs to comply with FEMA regulations. Thus, online gambling even though is not expressly prohibited is regulated by various authorities. One can try to circumvent these regulations however it would be a risky choice.

Conclusion

India's policy related to online poker is unclear. There are many loopholes in the legislation and no clear nation-wide policy can be ascertained.

<sub>Sources
1. Gambling Laws and Regulation in India, http://www.gamblingsites.com/online-gambling-jurisdictions/india/ (last seen on 1st August, 2016)
2. Online Betting in India, http://www.onlinecricketbetting.net/country/india/ (last seen on 1st August, 2016)
3. India Gambling Laws, http://sportsbetting.net.in/gambling-laws/ (last seen on 1st August, 2016)
4. Indian Supreme Court to Rule on Legality of Rummy and Poker, http://www.pokernews.com/news/2014/08/indian-supreme-court-rummy-and-poker-19116.htm (last seen on 1st August, 2016)</sub>

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