Nagaland Proposes Bill to Legalize Online Gambling in State, Historic Bill Likely to be Passed Within Few Days

Online gaming industry will rejoice to hear the news that Nagaland is ready to legalize online games of skill by passing a specific bill on the same. According to the latest report released by Jay Sayta on Glaws.in, the state is set to become the first in the country to do so.

On July 23, TR Zeliang, Chief Minister, from the ruling Nagaland People’s Front (NPF) introduced the online bill in the legislative assembly. Called the Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Bill, 2015, the bill is expected to be passed in the next few days, considering the large presence of the NPF in the assembly. It is believed that games, such as rummy and poker would be part of the bill.

Once passed, the bill will change the course of history Vis a Vis poker, adding credibility to the idea of poker as a game of skill and allow such games to be played for stakes legally.

The bill will hopefully end the current stagnant situation seen in the other northeastern state of Sikkim.

Sikkim already allows speculative gaming and had decided to legalize online gaming by issuing “go live” licenses to operators on the basis of strict guidelines and a set fee. One of the chief conditions had been the use of intranet only and the restriction of the offerings to remain within the state only.

In fact, Sikkim had awarded the first license in Oct last year to lottery king Santiago Martin’s company M/s. Future Gaming Solutions Private Limited.

Subsequently, more licenses were given to Maarm International and a third to the Essel Group in April 2015. Playwin Lotteries, a sub-brand of Essel was the first among the three to begin virtual horseracing and even started taking wagers. However, within a short time the Sikkim lottery department had stopped the company from further operations, citing technical issues and objections on method of operations.

Last month, the Sikkim govt did a backtrack and put all the licenses on hold and instructed all three licensees to restrain operations. The govt said that there were issues with the existing bill, which did not cover the new “go live” clause and the current situation. Operators were told that amendments were to be made to the old bill, but to date there has been no further progress on the matter.

Hopefully, with this move by Nagaland, Sikkim too, should follow suit and pass the online bill faster with ease. This new development will also add strength to pending cases like the Mahalakshmi Cultural Association case for rummy for stakes, besides positively influence the scenario in favor of such games, as one of skill.

Sayta reports that the Nagaland news was released in the local newspaper, The Morung Express and quotes from it,

“Gambling means and include wagering or betting on games of chance but does not include betting on wagering on games of skill.”

“Games of skill” shall include all such games where there is preponderance of skill over chance, including where the skill relates to strategising the manner of placing wagers or placing bets or where the skill lies in team selection or selection of virtual stock based on analyses or where the skill relates to the manner in which the moves are made, whether deployment of physical or mental skill and acumen.

In the statement of objects and reasons, Chief Minister stated the object of the Bill is to give effect to the provisions of the Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill 2015” in order to regulate and promote the conduct of online “Games of Skill” under issue of licence by the Government of Nagaland.

The statement stated that the sector of online games of skill is already well developed and established in India and other parts of the world. However, it is yet to be regulated in the country under a formal legal framework by any state of union territory, although there is no law that presently bars the conduct of online games of skill. The law as established in this country by rulings of various courts, including the Apex Court, clearly distinguish “Games of Skill” to be not gambling, and playing “Games of Skill” with or without stake to be a genuine business venture and not amounting to gambling since winning such games depend more on skill than chance.

“The Bill seeks to regulate and promote the conduct of online “Games of skill” with the primary objective of earning revenue for the state government by way of licensing fees and royalty,” the Chief Minister stated.”

Keep watching this space for the latest developments on this story.