Bombay HC Rejects Plea Seeking Revival of Maharashtra Casinos Act

In an order dated February 26, 2025, the Bombay High Court dismissed a petition seeking the revival of the Maharashtra Casinos (Control and Tax) Act, 1976, which had never been implemented and was repealed by the state legislature in 2023.[1]

Background

Under the Constitution, states have the exclusive power to make laws on matters related to betting and gambling as these fall under List II (state list) of the Seventh Schedule. While certain states have adopted the British Gambling Act of 1867, enacted by the erstwhile British rulers, others have developed their gambling legislation. The 1867 Act was primarily aimed at punishing public gambling and the keeping of common gaming houses.

In Maharashtra, betting and wagering are prohibited under the Bombay Prevention of Gambling Act of 1887. However, Sections 3 and 13 of the Act provide exemptions for horse race betting and games of skill.

In view of the rise in tourist traffic and to raise additional revenue, the Maharashtra Casinos (Control and Tax) Act, 1976, was enacted to provide for the licensing of casinos, permitting certain types of casino games to be played therein, taxation on money paid by participants in these casinos, etc.[2] Despite its enactment, the state government never issued a notification to bring the Act into force.

In 2015, following a directive from the Delhi High Court in PIL No. 19/2015, the Maharashtra government decided not to bring the Act into force, as reflected in a departmental note from July 2023. Subsequently, the state legislature passed the Maharashtra Casinos (Control and Tax) (Repeal) Act, 2023, repealing the 1976 Act.

Reliefs Sought

The petitioner, engaged in hospitality business and seeking to operate casinos in Maharashtra, sought the following reliefs:

• A declaration that the Maharashtra Casinos (Control & Tax) (Repeal) Act, 2023, is ultra vires the Constitution;
• A direction for the state government to notify the date from which the 1976 Act would come into force;
• A direction for the state government to process the petitioner’s applications for running casinos in hotels, floating hotels, cruises, and independent resorts under provisions of the 1976 Act.

Decision of the Court

The Court emphasised that the 1976 Act was never brought into force and was stillborn. Describing the Act as a “dead letter”, the Court stated that no legal rights had accrued to the petitioner so as to maintain this petition.

Additionally, the Court reiterated that both framing and repealing of laws are wholly the prerogative and the domain of the state legislature within its powers under the Constitution. An Act could be declared ultra vires on three established parameters: a) it exceeds the legislature’s competence, b) it violates fundamental rights or other constitutional provisions, and c) it is manifestly arbitrary. The Court found no such grounds in this case and rejected the petition.

[1] Dyuthbhumi Hotels and Resorts Pvt. Ltd. v. State of Maharashtra (WP 7921/2024)

[2] 276^th Report of the Law Commission of India, titled “Legal Framework: Gambling and Sports Betting including in Cricket in India”; available here.