Will Gambling Laws in Odisha Be Updated?

Gambling has been a popular pastime in Odisha for hundreds, perhaps even thousands of years. Many people in the state indulge in gambling during the festive seasons of Dussehra and Diwali.

In recent years, gambling has become more available than ever due to the advent of the internet and smartphone. Now, Odias, both rich and poor, have the opportunity to gamble online.

However, gambling laws in Odisha prohibit all forms of gambling. All states in India, including Odisha, are subject to the Public Gambling Act of 1867 – a central law that prohibits gambling venues and public gambling in India. States can alter the law according to local norms and make local gambling laws more or less restrictive.

Odisha’s local gambling laws (which were written in 1955), prohibit all forms of gambling, but make no mention of online gambling, which hadn’t even been thought about back then.

According to the Orissa Prevention of Gambling Act of 1955, all types of gamblng activities are deemed illegal in Odisha. The law prohibits playing or business of skill based games for stake also.

Punters who engage in any form of gambling can be punished by imprisonment or fine or both. The punishment also extends to any individual who sets up a gambling house in the state.

A recent petition filed in the Orissa High Court has challenged the constitutional validity of the gambling laws, while highlighting gaps in the laws being imposed in Odisha.

Is it Time To Update Gambling Laws in Odisha?

The petition, filed by Tic Tok Skill Games Private Limited (an online gaming company), contends that gambling laws in Orissa are outdated and serious modernisation for reasons like:

1: Odisha gambling laws are vague and unclear

First of all, it is important to note that Odisha state laws do not explicitly prohibit online betting, which has fast become the dominant form of gambling in India. Which in a way means residents of Odisha can place bets online without breaking the law, as long as the online betting sites are located outside of India.

2: Odisha’s gambling laws may be unconstitutional

The petition claims that a blanket prohibition of gaming in the state without any distinction between games of skill and games of chance goes against the doctrine of proportionality.

The blanket ban directly infringes the fundamental right to practice any trade and occupation guaranteed under the Constitution of India.

Acting on the petition, the Orissa High Court has sent a notice to the state government. The matter will be taken up for hearing in February 2022.

Following the hearing, the Odisha high court may either dismiss the petition or deem the gambling act of 1955 to be unconstitutional.

If the law is deemed to be unconstitutional, it would force the government of Odisha to update the law, or otherwise to fully remove and rescind the law.

3: New gambling laws could boost the economy

According to those supporting updated gambling laws, it could have a positive effect on the economy.

For example, in states such as Goa and Sikkim, where casinos have been legalised for decades, the gambling industry represent a sizable part of the state GDP. They argue Odisha could follow suit and legalise and regulate all forms of online gambling and betting. The state could then issue gambling licenses to foreign and domestic gambling operators wishing to operate within the state.

Going by the argument, If betting sites were to be fully legalised in Odisha, this would potentially lead to thousands of new jobs in the state, and the government would also be able to tax the gambling operators working within the state, and use the proceeds to fund anything from roads to schools in Odisha.

The state government is yet to reveal its stand on the subject. Whether it would revise the gambling laws or gambling even more restrictive is something to watch out for.