The Economics of Gambling
India's Gambling Laws
How the colonial-era Public Gambling Act of 1867 still shapes India's gambling laws, why gambling is a state subject, and the resulting patchwork of rules.
India’s gambling laws are old and fragmented.
Public Gambling Act, 1867
A colonial law banning running or visiting “common gaming houses”, with small fines.
State subject
Betting and gambling is on the State List (Entry 34), so states make their own laws.
Patchwork
- Some states allow casinos or lotteries.
- Others ban nearly all gambling.
- Laws usually exempt games of skill.
Illegal betting
Large illegal betting markets exist, especially on cricket, run through bookies and offshore sites.
Law Commission
In 2018, the Law Commission suggested regulating rather than banning betting, but no national law followed.
Economics
Bans can push activity into black markets, losing tax revenue and consumer protection.
During a big match, an illegal bookie takes bets over messaging apps, outside any regulation or tax.
Gambling is a state subject.
- The 1867 Public Gambling Act still applies.
- Gambling is a state subject.
- Games of skill are usually exempt.
- Bans can create black markets.
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