Bihar's New Gambling Law Overlaps Centre Act
New state law clashes with central gambling regulation.
Bihar has become the first state to notify a fresh anti-gambling law after the Centre’s Promotion and Regulation of Online Gaming (PROG) Act came into effect, creating a direct overlap where both laws apply, but the Centre claims overriding authority. The Bihar Gambling (Prohibition) Act, 2026, notified on August 13, repeals the 159-year-old Public Gambling Act and bans all gambling, both offline and online, without exempting games of skill.
State vs. Central Conflict
The Bihar Act directly conflicts with the PROG Act, which the Union government says has supremacy over any state law. Jay Sayta, a technology and gaming lawyer interviewed by MediaNama, explained that other states such as Haryana, Chhattisgarh, and Nagaland have carved-out provisions for skill-based games, but those laws predate PROG. He noted that the Supreme Court’s recent Junglee Games judgment declared gambling and betting, including skill-based games, a state subject, which supports the idea that state laws can prohibit all money-played games if they wish.
Judicial Context
The Junglee Games decision remains the law of the land, but review petitions are pending in the Supreme Court. Sayta said the judgment should be reconsidered by a larger bench, but until then, states can choose to carve out skill games or prohibit all gambling. Bihar has opted for a blanket ban, stating it will not carve out any games.
Regulatory Recommendations
Sayta suggested that India could adopt a U.S.-style approach, allowing states to regulate intrastate gaming while the PROG Act handles cross-border and international transactions. He also recommended geo-fencing and KYC checks to enforce state-level restrictions. The Bihar Act includes a rebuttable presumption that an accused was engaged in gambling, similar to provisions in the old Gambling Act and the NDPS Act.
Language Issue
A notable difference between the Hindi and English versions of the Act is that Section 17 in English reads “any state law,” while the Hindi version reads “any law.” Under the Bihar Official Language Act, 1950, the Hindi text holds primacy over the English translation in case of ambiguity, a point that may affect interpretation.
The Bihar Act does not establish a regulatory authority like the Online Gaming Authority of India (OGA). Instead, it relies on the Home Department and police for enforcement, following the traditional prohibition approach. Sayta argued that if Bihar later decides to regulate money games, it would need a regulator.
Financial Transaction Liability
Both platforms and individuals are liable under the Act. The law targets payment aggregators and banks that facilitate prohibited transactions, as well as persons who open bank accounts for such activities. This dual liability is intended to address jurisdictional challenges faced by the RBI and state authorities.
The debate over distinguishing skill from chance remains unresolved. Sayta believes that a blanket prohibition is excessive, potentially covering legitimate skill-based tournaments such as chess or golf. He cautions that the current approach may be overly broad.
For further context, see the state’s statistical records stats and the list of sporting fixtures that illustrate the breadth of activities affected by the new law fixtures.
