India’s Supreme Court hears law case that could change Maharashtra Casinos Act

A case aiming to bring back a nearly 50-year-old law that could pave the way for legal casinos in Maharashtra has made its way to India’s Supreme Court. This comes after the Bombay High Court turned down the plea almost two months ago.

The petition has been filed by Dyutbhumi Hotels and Resorts Pvt Ltd, which was previously known as Mumbai Gambling Management Pvt Ltd.

The company is looking to set up and run casinos in the state under a law called the Maharashtra Casinos (Control and Tax) Act, 1976.

In 2023, the state government repealed the law. But the petitioner argues that this repeal goes against India’s constitution.

महाराष्ट्रात कॅसिनो सुरूच होऊ नयेत, यासाठी 1976 चा कायदा रद्द
या विधेयकामुळे महाराष्ट्र कॅसिनो कायदा कायमस्वरुपी रद्द होणार आहे. राज्यात कॅसिनो नकोच, ही ठाम भूमिका सातत्याने मी घेतली होती. 1976 पासून अस्तित्त्वात असलेल्या कायद्यामुळे त्याची परवानगी मागण्यासाठी लोक वारंवार… pic.twitter.com/MlWmvC5SyS

— Devendra Fadnavis (@Dev_Fadnavis) December 8, 2023

The law, officially known as Act 31 of 1976, was introduced “to provide for the control and regulation of casinos and imposition of tax on casino games” in Maharashtra.

Despite being on the books for decades, the law has never actually been implemented. Now, the petitioner is asking the court to step in and force the state government to officially notify and enforce it.

According to the Act, a “casino game” means “games of chance played by means of any machine or instrument, as may be prescribed from time to time.”

It makes it clear that casinos can’t operate without a license: “Every holder of a licence under this Act shall keep accounts relating to the casino in such manner and submit to the State Government or to an officer authorised by the State Government in this behalf a statement of accounts in such form and at such intervals as may be prescribed.”

The law also spells out how taxation would work: “There shall be levied and collected and paid to the State Government, out of all moneys paid or agreed to be paid by the participants by way of stakes or bets at any casino game played at any casino licensed under this Act.”

Breaking the rules laid out in the Act comes with consequences. If someone violates any part of it or the rules that go with it, they can be fined up to five thousand rupees if convicted.

Government oversight is a key part of how the law is designed to function. It gives the state the authority to create rules as needed through official notification: “The State Government may, by notification in the Official Gazette, …make rules for carrying out the purposes of this Act.”

The outcome of this case could have a major impact on Maharashtra’s gaming and hospitality industries. If the Supreme Court sides with the petitioner, it could open the door to legal casino gaming in one of India’s most populous and economically important states.

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