INTRODUCTION   A few days ago, a client approached me with an ambitious gleam in their eyes and a question that hinted at the promise of fortune: “How do I open an online gaming business related to bets and lotteries?” As someone who has been continuously entangled with the online gaming industry due to my profession, I knew the journey was filled with challenges and opportunities. I advices him that you need to understand the legal landscape. As each State has its own regulation regarding online gambling. You need to comply with these laws, which might involve obtaining licenses or setting up your operations in a jurisdiction where online betting is legal. One of the most important determinant in setting up online gambling business is to distinguishes games of skill from game of chance. I also shared additional insights as follows, that could assist in setting up your own online gambling business.   The online gambling industry in India makes a lot of money. The market size of online gambling in India was $2.7 billion in 2023. A group called IMARC Group thinks that by 2032, market size  will be $5.49 billion. This means that the amount spent on online gambling will grow at a rate of 8.10% each year between 2024 and 2032.     IDENTIFY EXACT NATURE OF BUSINESS   In India, gambling laws are largely determined by individual states, leading to a variety of regulations across the country. For instance, states like Goa and Sikkim have legalized and regulated certain types of online gambling, allowing them to operate under specific guidelines. On the other hand, Maharashtra, Telangana, and Andhra Pradesh have taken a much stricter approach by banning online gambling entirely. In Tamil Nadu, the situation is more fluid; the state had banned real money games such as rummy and poker, but these bans were recently overturned by the Madras High Court. Meanwhile, states like Kerala and West Bengal are more lenient, permitting games that are based on skill rather than chance. This diverse regulatory landscape reflects the different attitudes towards online gambling in India.   Games of chance are primarily determined by luck or random events. Players have little to no control over the outcome, and winning is largely based on chance. Examples include slot machines, lottery, and bingo. Games of skill rely heavily on the player’s physical or mental abilities. The player’s expertise, strategy, and decision-making significantly influence the game’s outcome. Examples include chess, rummy, poker (to an extent), and fantasy sports.   In legal terms, the distinction between games of chance and games of skill is crucial. Games of chance are often regulated or prohibited by law, while games of skill are generally considered legal activities. A key factor in determining whether a game is a game of chance or a game of skill is the degree to which skill influences the outcome. If skill plays a substantial role in determining the result, the game is more likely to be classified as a game of skill.     BUSINESS STRUCTURING   a)    Sikkim: The Sikkim Act and Rules lays down requirements, the operator must only function in Sikkim and can only be a company incorporated in India. The requirement include: i.               The firm/company must be registered in Sikkim. ii.             Application to be made to the government (Form I). iii.            Application fee of INR 500/-.   b)    Nagaland:  The process of obtaining a license has been goven in the Nagaland Prohibition of Gambling and Promotion and Regulation of Online Game and Promotion and Regulation of Online Games of Skill Rules, 2016. The requirements include: i.               The person/entity must be registered in India and have a substantial holding and controlling stake in India. ii.             The company should not be engaged in any form of ‘gambling’’ iii.            No criminal record. iv.            Application should be filed in the prescribed format along with the application fees of INR 50,000/-. v.              Required documents need to be submitted.   c)     Goa:  Section 13A of the Goa, Daman and Diu Public Gaming Act allows for five-star hotels and offshore vessels to set up casinos without the same being prohibited under the definition of ‘common gaming house’.     STATE SPECIFIC LAWS   In India, gambling laws are primarily governed at the state level, with each state having the authority to regulate gambling activities within its borders. This means that the legality of online gambling can vary significantly from one state to another, with some states like Goa, Daman, and Sikkim allowing certain forms of gambling, including online casinos, while others impose strict prohibitions. The following state specific laws relating to online gambling:   a)    Sikkim: The state of Sikkim permits the offering of casino games such as roulette and blackjack by obtaining a licence under the provisions of the Sikkim Online Gaming (Regulation) Act, 2008 (“Sikkim Act”). Sikkim has a licensing regime for all online games – whether of chance or a combination of skill and chance.  It is pertinent to note that the licensees are permitted to conduct their gambling activities only in five-star hotels.     The state of Sikkim offers licences for intranet games under the Sikkim Act and Rules.  The intranet games include: (a) super pan 9; (b) roulette; (c) keno; (d) blackjack; (e) backgammon; (f) punto banco; (g) chemin-de-fer; (h) bingo; (i) baccarat; (j) poker dice; (k) casino brag; (l) poker; (m) pontoon; and (n) other sports games that involve prediction of results of sporting events and placing a bet on the outcome, in part or whole, of such sporting event.     The duration of the licence is five years unless it is surrendered or cancelled.  The licence may be renewed on application for the same. The licensees under the Sikkim Act and Rules are required to pay a provisional fee of INR 1,00,000 (approx. USD 1,210) and INR 1,00,00,000 (approx. USD 121,048) as a licence fee for a five-year licence with an online gaming levy at a percentage as may be notified from time to time by the state