INTRODUCTION
Sikkim, a captivating state in India, allures travellers not only with its breathtaking beauty but also with its unique gaming regulations. This captivating region has established a robust legal framework to govern both traditional brick-and-mortar casinos and the ever-evolving realm of online gambling activities. In this blog, we embark on an enthralling journey through the gaming laws of Sikkim, delving deep into the intricacies of regulations that shape the industry.
Our expedition commences with an exploration of the regulations surrounding physical casinos in Sikkim. We decipher the framework that governs these establishments, shedding light on licensing requirements, operational guidelines, and the responsibilities entrusted to casino operators. By unravelling the nuances of these regulations, we acquire invaluable insights into the vibrant world of gambling in Sikkim.
PHYSICAL CASINOS IN SIKKIM
Sikkim has established stringent regulations governing the operation of physical casinos through the Sikkim Casinos (Control and Tax) Act of 2002[1] and the Sikkim Casino Games Commencement (Control and Tax) Rules of 2007[2]. These comprehensive laws outline the necessary framework for running casinos exclusively within five-star hotels situated in the state. Currently, Sikkim has limited the number of casino licenses to just two.
The Sikkim Casinos (Control and Tax) Act of 2002[3] grants the government, an authority to grant licenses to individuals and businesses seeking to operate casinos. It has thus been established that there is a requirement for specific procedures that must be completed to obtain a license and legal procedures for the taxation and regulation of casino games in the state.
ONLINE GAMING IN SIKKIM
Sikkim plays an important role in regulating online games through the formation of the Sikkim Online Gaming (Regulation) Act 2008[4]. This Act aims to regulate, regulate, and tax all forms of online gaming, be it electronic or offline and covers jurisdiction over the entire state of Sikkim by also providing clear details about online gaming highlights. For participation in online games at Sikkim, it is required the use of licensed online gaming platforms rather than public sites. While the law deals with the procedure for obtaining a license, including the specific conditions and associated fees for granting or denying a license, the condition it sets is that only companies or legal business partners in India have the right to apply and obtain a license to operate an online gaming platform. In addition to the license, the law also includes important issues of marketing and promotion of online games and organization of contests and competitions, penalties for violations of the license, and fees paid by licensees in certain cases of non-compliance with the rules and penalties for people playing online games in violation of the license are also outlined in the act.
NOTEWORTHY AMENDMENTS
There have been consistent efforts from the government of Sikkim to improve its gaming regulations through a series of notable amendments, strengthening the regulatory framework and at the same time ensuring effective governance of the gaming industry. The noteworthy amendments include:
- The Sikkim Online Gaming (Regulation) Amendment Act of 2009[5]: This amendment introduced some significant changes to the principal act, while allowing entities to register under the Companies Act, 1956, and also fulfilling the requirements for obtaining licenses in online gaming. The amendment also expands the scope of the act to encompass “Sports Gaming” in addition to “Online Games,” acknowledging the evolving landscape of the gaming industry.
- The Sikkim Online Gaming (Regulation) Amendment Act of 2011[6]: This amendment expanded the definition of the term “Authority” and introduced provisions for the right to appeal against orders issued by the authorized officer, having built a strong appellate procedure, allowing stakeholders to file appeals and establishing an appellate authority to hear these appeals. This modification also aims to increase transparency and at the same time provide a fair and accessible remedy for disgruntled parties.
- The Sikkim Online Gaming and Sports Gaming (Regulation) (Amendment) Act of 2022[7]: This recent amendment brought some significant changes to the gaming laws of the state where it addressed the duration of licenses by reducing it from five years to one year, requiring operators in online gaming and sports gaming to renew their licenses more frequently and additionally, the amendment revised the payment structure for the annual renewal fee, ensuring a fair and updated fee assessment for the license.
ADVERTISING AND COMPLIANCE
Licensees of online gaming services in Sikkim are permitted to advertise, but they need to comply with specific requirements and guidelines to ensure responsible advertising practices present in the online gaming industry. These regulations prioritize consumer protection while also upholding the integrity of the gaming industry. Some key aspects of advertising and compliance in Sikkim[8]:
- Accurate Information: Licensees must be provided with precise and transparent information about their online gaming websites or platforms when they advertise, including the disclosure of the operator’s name, contact details, and relevant licensing information to establish trust and credibility with potential customers.
- Non-Offensive Content: Advertisements must adhere to standards of decency and avoid any content that may be perceived as offensive, misleading, or harmful. Licensees are expected to maintain ethical advertising practices that reflect the integrity and dignity of the gaming industry.
- Age Restrictions: Licensees are strictly prohibited from targeting individuals below the age of 18 in their advertisements. Online gaming operators must ensure that their promotional activities are directed exclusively towards individuals who meet the legal age requirements for participating in online gaming activities, safeguarding vulnerable populations.
- Jurisdictional Compliance: Licensees must diligently comply with jurisdictional restrictions on online gaming advertising. It is essential to refrain from advertising in jurisdictions where online gaming is prohibited by law. This compliance ensures that advertisements are not disseminated in areas where online gaming activities are not legally authorized, maintaining regulatory compliance and respecting legal boundaries.
CONCLUSION
The Northeastern state of Sikkim has implemented a comprehensively well-regulated framework for both physical and online gaming activities that occur within its boundaries. There has been a clear set of guidelines and differentiation of the requirements for the operators and adjoining players to enjoy a wholesome experience with transparent trade practices. The regulations governing physical casinos in five-star hotels limit the licenses issued to maintain control over the industry while providing a platform for high-quality gaming experiences and ensuring proper oversight of the casinos in the state and the revenue generation associated with them.
Sikkim’s approach to online gaming is equally diligent, here with the Sikkim Online Gaming (Regulation) Act of 2008 and subsequent amendments which have established guidelines for licensing, advertising, and compliance. By incorporating amendments that reflect the changing dynamics of the gaming industry, Sikkim remains at the forefront of regulation and innovation in the online gaming sector against the whole country.
The state has always had an approach of embracing responsible gaming practices and complying with the regulations set forth, operators and players engage in gaming activities with confidence, these gaming laws strike a balance between consumer protection, revenue generation, and the promotion of a vibrant gaming environment. Overall, Sikkim serves as a model for effective regulation in the gaming industry of today, fostering a safe and regulated gaming environment that has contributed to the state’s economic growth and provides an enjoyable experience for players, and a regulated mechanism for the operators.
Author(s) Name: Raghav Ladia (Institute of Law, Nirma University)
References:
[1] The Sikkim Casinos ( control and tax) Amendment Act 2010
[2] Sikkim Casino Games Commencement (Control and Tax) Rules 2007
[3] The Sikkim Electronic Entertainment Games (Control And Tax) Act, 2002, S 11
[4] The Sikkim Online Gaming (Regulation) Act, 2008, s 9
[5] The Sikkim Online Gaming (Regulation) Amendment Act 2009
[6] The Sikkim Online Gaming (Regulation) Amendment Act of 2011
[7] The Sikkim Online Gaming and Sports Gaming (Regulation) (Amendment) Act 2022
[8] The Sikkim Online Gaming (Regulation) Act, 2008, s 5 & s 8
