New Regulated Online Gambling in India

02/07/2012
By Pamela PattersonGoogle

A new bill called the Sikkim Online Gambling (Regulation) Bill was passed by the Sikkim Legislative Assembly.  The new bill will allow legalized and regulated online casino gambling in India’s northeastern Sikkim province.  Though the new bill has already excited members of the gambling industry, the bill can not take effect without overcoming some final hurdles on the federal level.

 

Earlier last year, the Indian Parliament created Information Technology Rules that, aside from upsetting online free speech activists, may also prohibit online gambling at the federal level.  The law obligates websites and other internet related companies to actively prevent the proliferation of practices that the Indian government deems socially unacceptable – including gambling.  Some online casino reviews remains skeptical about the ability to act locally in light of the federal situation.

 

A careful reading of the Sikkim legislation reveals that the Sikkim lawmakers were well aware of the federal government’s power in preventing online gambling.  It is with that in mind that they stipulated in government contracts with potential operators that the provincial government is not liable for any interference on part of the federal government.  That is essentially saying that they know that their bill doesn’t have the power to actually allow online gambling without significant change in federal legislation; therefore, anyone who enters a contract is doing so at their own risk.

 

There is precedent, however, for such maneuvering.  In America, states have engaged in legislation legalizing online gambling while problems still existed on the federal level.  Now that the USDOJ has redefined the Wire Act to exclude internet gambling, those states will be the first to profit from the tax revenue coming from USA online casinos. 

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