Chhattisgarh Government Bans Online & Offline Gambling, Skill Games Exempted

Indian states concocting laws to outright ban real money online gaming is nothing new. In fact, over the past two years, it has become the norm. In an inexplicably refreshing development, the Chhattisgarh government recently passed the Chhattisgarh Gambling (Prohibition) Bill 2022, banning online gambling and betting but exempting games of skill such as poker, rummy, fantasy sports, etc.

Before we get into the details of the Bill, let’s do a quick recap of how things unfolded.

The Mahadev Betting Scam

Last November, central agencies, including the Enforcement Directorate (ED) and the Income Tax Department (IT), began investigating the Mahadev App – an illegal sports betting app. The Chhattisgarh Police’s crackdown on the local network of the Mahadev App and Reddy Anna app led to several arrests.

ED sleuths had fixed their eyes on the alarming spread of the Reddy Anna and Mahadev sports book network in Chhattisgarh and other parts of India. Controlled and conceptualized by a group of local youths, both online betting platforms reportedly generate illegal revenues to the tune of ₹250 to ₹300 Crores per month.

As per the information available from the police and independent sources, the Mahadev app was registered in Dubai in 2016 and allegedly has links with fugitive mafia don Dawood Ibrahim. The group pays ₹100 Crores per month as protection money to D-Company, a highly placed source claimed. Links with the global mafia and terror group D-Company make it a perfect case for the probe by the National Investigation Agency (NIA).

Chhattisgarh Government Realizes Need for Regulation

Following the reveal of this betting scam, it came to light that Chhattisgarh was in dire need of regulating real money online gaming within the state. On December 31, the Chief Minister of Chhattisgarh, Bhupesh Baghel, chaired a cabinet meeting that approved the Chhattisgarh Gambling (Prohibition) Bill 2022. The state’s remediation step was much required as online gambling and betting run deep into the Chhattisgarh society through the Mahadev app and its variants.

On Wednesday, January 4, the Chhattisgarh Legislative Assembly passed the Bill intending to prohibit gambling, including betting or wagering in person or on online platforms for financial gains. Home Minister Tamradhwaj Sahu tabled the Chhattisgarh Gambling (Prohibition) Bill 2022 in the house and said in the statement of objectives of the Bill that the state government must ensure social-economic security for every citizen.

The Bill will come into force from the date of the gazette notification.

Tenants of the Chhattisgarh Gambling (Prohibition) Bill 2022

According to the Bill, anyone found playing or aiding or abetting gambling in public places shall be liable to imprisonment for any term of up to six months or a fine of not less than ₹3,000 but not exceeding ₹10,000, or both.

“Whoever, being the owner or occupier, or having the use, of any house, room, tent or place or online platform within the limits to which this Act applies, opens, keeps or uses the same as a gambling-house shall be liable to imprisonment not less than six months but not exceeding three years and fine up to ₹50,000 for a first-time offense. For subsequent offenses, such offender will face imprisonment not less than two years, but not exceeding five years, and penalty of up to ₹100,000,” the Bill states.

Further, it says that whoever is found playing, aiding, or abetting online gambling shall be punished with imprisonment not less than one year but not exceeding three years and a fine not less than ₹50,000, not exceeding ₹5 Lakhs for a first-time offense.

For subsequent offenses, such offenders will face imprisonment not less than two years, not exceeding seven years, and a fine of not less than ₹1 Lakh and not more than ₹10 Lakhs.

Whoever is found providing their bank account, mobile app wallet, or any other account willfully for gambling in person or online and gains profit from it shall be liable to imprisonment up to six months, or a fine up to ₹10,000, or both.

Advertisement of gambling games too will be prohibited in print and electronic media, a violation of which will attract imprisonment of up to three years and a fine of up to ₹50,000.

Skill Games Exempted

In a move welcomed by the poker community, the Bill only outlaws games of chance, a legal term for gambling. Games of skill, or games held by courts to not involve gambling, have been exempted from the Bill.

At a time when most state governments are refusing to make the distinction between ‘games of skill’ and ‘games of chance’ when formulating laws prohibiting online gambling, it truly is a revolutionary step taken by the Chhattisgarh government to exempt games like poker and rummy from the gambit of the Chhattisgarh Gambling (Prohibition) Bill 2022.

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