There were circumstances where one state has banned the lottery of other states, including lotteries that are online. The Karnatka High Court upheld the decision
of the Karnataka government to make itself a 'lottery free zone' by imposing a ban on lotteries of all other states, including online lotteries under the Lotteries (Regulation) Act 1998 in a recent case. Hawaii government, in this situation, directed the closure associated with the terminals and kiosks selling the online lotteries.
Enforcement over foreign jurisdictions
In the event that internet sites are hosted and operated from outside India, it may be problematic for the Indian authorities to issue any directive to shut them down or prohibit their access without needing its blocking capabilities under the ITA. The authorities have little to be concerned about, as indian exchange that is foreign
don't allow remittances
outside Asia for gambling associated activity, including the purchase of lottery seats, football swimming pools and sweepstakes. A gambling website hosted outside India aiming at receiving money from within India cannot do so through legal channels as a result.
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The following legislation is relevant to gambling:
People Gaming Act, 1867
This Act provides punishment for public gambling and for keeping of a 'common gaming house'. This Act also authorises their state governments to enact legislation to manage public gambling in their respective jurisdictions. The penal legislations in particular states were amended prior to their policy on gambling. Nonetheless, this legislation does not have any direct effect on online gambling unless an extensive interpretation is provided to this is of common gaming household so as to consist of virtual forums also.
The Indian Contract Act, 1872 (ICA)
The ICA is a codified umbrella legislation that governs all contracts that are commercial India. Beneath the ICA, a wagering contract could be the the one which can't be enforced. The Act lays down; 'Agreements by way of wager are void, and no suit shall be brought for recovering anything purported to be won on any wager or entrusted to any individual to abide by the result of any game or other uncertain event on which any bet is created'. Gambling, lottery and award games have held become wagering contracts and thus void and unenforceable. While a wagering agreement just isn't illegal, it can't be enforced in a court of legislation. Hence, the courts will maybe not entertain any reason behind action that arises out of a wagering contract.