Why You Should Read This
Playing a round of Teen Patti with family and friends on Diwali night is a tradition in many Indian households. With money on the table and laughter all around, you might think, “This is harmless fun!” But have you ever stopped to consider the legal implications of such games, whether offline or online?
In this blog, we’ll break down what counts as gambling in India, the difference between skill and chance-based games, and the legal precautions you should take when participating in friendly or virtual gambling activities.
Table of Contents
- Mythology and Gambling
- Game of Skill vs. Game of Chance
- What Does Indian Law Say About Gambling?
- Are There Any Exceptions?
- The Status of Online Gambling
- Is Playing Teen Patti on Diwali Illegal?
- Conclusion
Mythology and Gambling
Indian mythology reflects our long history with gambling. According to Hindu folklore, Lord Shiva and Goddess Parvati used to play dice games for fun—an activity that evolved into tradition and eventually took a commercial form involving money.
Interestingly, modern science shows that gambling can activate brain responses similar to substance addiction.
In the State of Bombay v. R.M.D. Chamarbaugwala, the Supreme Court ruled that the right to trade and commerce under Article 19(1)(g) of the Constitution doesn’t apply to activities that promote reckless behaviour for easy money through luck or chance. The court even referred to the Mahabharata, where Yudhishthir gambled away his kingdom and wife, highlighting the dangers of such behaviour.
As per the Indian Constitution, gambling is defined as an activity involving a conscious risk of gain or loss where the outcome is driven by luck or chance. In simpler terms, if a game involves a wager and its result is left to chance rather than skill, it falls under the category of gambling.
Game of Skill vs. Game of Chance
A game of skill depends largely on the player’s experience, knowledge, strategy, and mental or physical capability. In contrast, a game of chance relies more on luck, even though there might be some level of skill involved.
In K.R. Lakshmanan v. State of Tamil Nadu, the Supreme Court clarified that a game of skill—even with some element of chance—is one where success largely depends on the player’s expertise and judgment.
What Does Indian Law Say About Gambling?
The Public Gambling Act of 1867 is the primary law at the national level, which prohibits operating or visiting public gambling houses. It also lays down penalties:
- Operating a gambling house: ₹200 fine or up to 3 months imprisonment (Section 3)
- Visiting a gambling house: ₹100 fine or up to 1-month imprisonment (Section 4)
The Act defines a “common gaming house” as any place, room, vehicle, tent, etc., where gambling is conducted for public use and profit.
However, this Act doesn’t cover online gambling, and because gambling is a State subject under the Constitution (Seventh Schedule, List II), state laws can override or amend central regulations.
Section 12 of the Act makes a clear distinction: games of skill are exempt, whereas games of chance are not.
Are There Exceptions to the Rule?
Yes, several states have enacted their own laws regarding gambling, with varying degrees of leniency:
- Goa & Sikkim: Permit land-based and even offshore casinos. Goa also restricts locals and under-21s from entering.
- Nagaland: Legalises online games of skill under licenses (2016 Act).
- Maharashtra: Allows horse race betting and lotteries, but bans online gambling.
- Andhra Pradesh: Permits lottery and rummy, despite banning general gambling.
- Karnataka: Allows horse racing and certain lotteries; poker is allowed in clubs but remains controversial.
- Telangana: Broadly bans gambling, including online games of skill or chance.
Other states also have their own laws that continue to evolve.
What About Online Gambling?
Online gambling exists in a grey zone under Indian law. While the Public Gambling Act doesn’t specifically mention online platforms, the Information Technology Act of 2000 was amended in 2011 to direct ISPs to block unlawful online betting sites.
Still, enforcement remains a challenge, especially when platforms operate offshore. Indian authorities have limited reach over websites that are legally registered and run outside the country.
Only Sikkim and Nagaland have clearly defined laws regulating online gambling.
Courts, however, have tried to bridge the gap:
- The High Courts of Punjab & Haryana and Bombay have ruled that fantasy sports and similar formats fall under games of skill.
- Platforms like Mobile Premier League (MPL) highlight this legal distinction in their user agreements, stating that success is based on judgment, sports knowledge, and strategy, not chance.
Even games like rummy have been recognised by the Supreme Court as games of skill because they require memory, planning, and strategy.
That said, users must be mindful of their state’s restrictions, as some states prohibit even online skill-based gaming.
Is Playing Teen Patti on Diwali Illegal?
Let’s address the big question: is your Diwali poker night illegal?
In the Dominance Games Pvt. Ltd. v. State of Gujarat, the Gujarat High Court ruled that poker is a game of chance and thus falls under the gambling prohibition.
However, a Punjab and Haryana High Court ruling added nuance: card games played privately, during festive occasions, and without profit motive (i.e., the host doesn’t earn from it), do not qualify as illegal gambling under the Act.
According to the Public Gambling Act, the activity becomes illegal only if held in a “common gaming house”—a location where the host charges a fee or earns commission from the event.
For example:
- A friendly game of Teen Patti with friends and no host profit? Likely not illegal
- An event held for monetary gain or open to the public? Illegal, subject to fines or jail
However, laws vary by state. Some states require you to notify or get permission from the local police station, even for private gaming events.
Conclusion
While card games like Teen Patti can be a festive tradition, it’s important to be aware of the legal boundaries, especially when money or public participation is involved.
Remember:
- Games of skill are generally legal.
- Games of chance are often illegal, especially if played for profit or in public spaces.
- Online gambling laws are complex and vary from state to state.
So, before you place your bets, whether online or offline, know the law, stay informed, and enjoy your games responsibly.
