LEGALITY OF TAMBOLA/HOUSIE IN INDIA

This note seeks to address whether Tambola/housie as a game is legal in India or whether it
constitutes as gambling. Moreover, it seeks to address whether it is a game of skill or chance. The
initial part of this document looks at any state laws, provisions or notification which mention
Tambola/Housie and the second part of the document includes any case laws which mention the
same. It aims to shed any light on the legality of the said game in India.

I. STATE LAWS/PROVISION/NOTIFICATIONS AND FINANCE ACT

The following are different documents or provisions by the state government that mention
Housie or give any kind of information or directions regarding the same.

A. ARUNACHAL PRADESH
“In the Arunachal Pradesh gazette, published by Authority, No. 1, Vol. XIX, Naharlagun,
Tuesday, January 15, 2008, Pausa 25, 1929 (Saka).

NOTIFICATION
The 17th June, 2008
No. DTC/TL-25/99-2000 (pt)/1071-1175. — The Governor of Arunachal Pradesh is pleased to
approve the revision of existing trade licence fees and inclusion of more new trade items for streamlining of
trade fees as per Cabinet decision taken on 5th June, 2008 vide No. CAB/M-06/2008 item No. 17.
The revised rate of initial fees and yearly renewal fees on each trade items are shown in Annexure ‘A’. A
penalty for late renewal shall be realized @ 0.5% of the initial fee per day from the defaulters. The revised
rate will be effective from the date of issue of this order.
M. Pertin, IAS,
Commissioner (Trade & Commerce),
Government of Arunachal Pradesh,
Itanagar.”
 In this notification1 under Miscellaneous trade, Seasonal lottery and
housie/tombola trade license has to be taken from the state government website by
paying a nominal fee.

Moving on, recently the Government of Arunachal Pradesh passed an order under
which it was noted that housie/tambola was banned under the Arunachal Pradesh
gambling(prohibition) act, 2012. The order is herein attached-
It is pertinent to note here that even though the order specifically mentions one
village but it also mentions that any kind of organising/playing housie/tambola
would come under the purview of said act.

1
http://www.arunachalpradesh.gov.in/wp-content/uploads/normal_gazette/1526635761_N%20G%20-
%202008.pdf
 B. UTTAR PRADESH (ENTERTAINMENT TAX DEPARTMENT),
GUIDELINES FOR REGISTRATION FOR ENTERTAINMENT TAX
AGENCIES, UP
Application must be submitted for registration of agency under which housie comes under
the “games” category and the documents necessary for the application are listed under the
same.
These guidelines were submitted by the Entertainment Tax Department. Under
Annexures, in this document there is a list of items for which license has to be taken for.
Under subtopic 6, in annexures, in the category of Games, Housie is mentioned and the
necessary documents required for the registration of the same are listed.

C. GAMBLING IN IMPHAL (MANIPUR), INDIA

Housie bumper draws and clubs were brought down in Imphal where gambling was at an
all-time high especially among the adolescents. Authorities said that there is no concrete
law to ban tambola in the State. However, the State Government would consider banning
the game under the Gambling Act2 or Anti-Money Laundering Act. The police have been
asked to bust such illegal games in the State.3

D. ANDHRA PRADESH
The following is the license that can be obtained in order to conduct the event of
Tambola.

HOME (GENERAL. B) DEPARTMENT

***
ORDER
In the reference 1st read above, orders were issued renewing
“Tambola Licence” to M/s. Fateh Maidan Club, Lal Bahadur
Stadium, Hyderabad to conduct Tambola games, limited to fifty
two (52) events at this premises, for a period of one year from
01-04-2012 to 31-03-2013 , with the condition prescribed therein.
It is observed that the said renewal period has already expired by
31-03-2013.
2. In the reference 2nd read above, the Secretary, Fateh
Maidan Club, Lal Bahadur Stadium, Hyderabad submitted a
proposal to Government in the prescribed format (i.e. Form-I) for
renewal of Tambola licence for conducting tambola in their
premises under Section 5 of the Andhra Pradesh Lotteries Act,
1968 for a period of one year from 01-04-2013 to 31-03-2014 and
has enclosed a Challan No.202778, dated: 02-01-2013 (Rs.780/-)
(Rs.15 x 52 events). He has requested the Government to renew
the Tambola licence for period of one year from 01-04-2013 to

2
https://www.ifp.co.in/page/items/5773/5773-sp-bans-tambola-at-iboyaim
3
http://e-pao.net/GP.asp?src=9..270214.feb14
31-03-2014.
3. In the reference 4th read above, the Commissioner of Police,
Hyderabad City, has informed that there is no objection for renewal
of Tambola Licence to M/s.Fateh Maidan Club, Lal Bahadur
Stadium, Hyderabad for a period of one year from 01-04-2013 to
31-03-2014, subject to the conditions mentioned therein.
4. In the circumstances reported by the Commissioner of Police,
One year Permission to Tambola Game
Rs.398/- special
teachers/LPs/PETs notional
increments
Departmental Test November
2013 and results
Minimum of Time Scale of
RPS2015 to the Contract
Employees working in
Universities, Societies, KGVB
and Model Schools
HOME UNION GOVT. DEPARTMENTS ANDHRA PRADESH TELANGANA

Hyderabad, the Government have examined the matter in

accordance with the Rule-3 and Rule-4 of Andhra Pradesh
Lotteries Rules, 1968, and hereby renew “Tambola Licence” to
M/s.Fateh Maidan Club, Lal Bahadur Stadium, Hyderabad for a
period of one year from 01-04-2013 to 31-03-2014 to conduct
Tambola games, restricting the games to fifty two (52) events per
annum, in the premises of the Club, on the following conditions:-
1. The Management should park the vehicles within the
premises of the club and post adequate security guards to
keep the vehicles in order.
2. The Club shall not derive any profit from the conduct of
Entertainment games of Tambola.
3. Participants in the Entertainment games of Tambola shall
be restricted exclusively to adults, regular members of the
Fateh Maidan Club and the families only. Children below
18 years shall not be allowed to participate.
4. The licensing authority reserves the right for cancellation of
permission at any time without any notice.
5. Any other conditions as feels required by the Government.
6. The licensing authority reserves the right for cancellation of
permission at any time without any notice.
5. The Licence for an Entertainment Lottery (Entertainment
Tambola) in Form-III is appended to this order.
[[
6. The Commissioner of Police, Hyderabad is requested to take
necessary action in the matter.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA
PRADESH)
PRABHAKAR D.THOMAS
SPECIAL CHIEF SECRETARY TO GOVERNMENT
FORM III
(See Rule 4)
LICENCE FOR AN ENTERTAINMENT LOTTERY
(ENTERTAINMENT TAMBOLA)
UNDER SECTION 5
Licence No. 2 The Secretary, M/s.Fateh Maidan Club, Lal Bahadur
Stadium, Hyderabad, in the premises of M/s.Fateh Maidan Club,
Lal Bahadur Stadium, Hyderabad, is hereby granted licence
subject to provisions of the Andhra Pradesh Lotteries Act, l968
(Andhra Pradesh Act 16 of 1968) (herein after called the said Act )
and the rules made there under for the promotion of a lottery
described in the Schedule annexed to this licence, as an incident of
an entertainment to be held on during the year from 01-04-2013 to
31-03-2014, subject to the conditions hereinafter mentioned,
namely :-
CONDITIONS
1. The licensee shall afford all facilities for the checking of his
account and shall, at all reasonable times produce for inspection
accounts or other documents and shall furnish fully and correctly
any information in his possession as may be required for the
purpose of the said Act by the licensing authority or by any officer
authorised by it in this behalf.
2. The licensee shall not vary the details of the price of the ticket
and the prizes stated in respect thereof in the schedule hereto
annexed without the previous permission of the licensing
authority.
3. The licensee shall state in a prominent place every notice
announcement, ticket or any other document issued in connection
with the lottery that he has obtained such licence and shall also
specify in such notice, announcement, ticket or other documents,
the number and date of the licence.
4, Without prejudice to any other penalty provided under any of the
D.A. to AP State Govt
Employees from 1st January
2018
Service Rules to Anganwadi
Workers and Anganwadi
Helpers (Payment, leave and
disciplinary proceedings)
GO.No.14&15
Interim Relief for AP State Government
employees from 1.7.2019
AP Educational Institutions (Regulation of
Admissions) Amendment Orders
Change of land use from
Conservation use zone to
Residential use zone
Amendment to AP Last Grade
Service Rules,1992
D.El.Ed. Colleges in Andhra
Pradesh
10/9/2019 One year Permission to Tambola Game - AJIT KUMAR
 https://www.ajitkumar.co.in/2013/05/one-year-permission-to-tambola-game.html 3/4
provisions of the Act or the rules made thereunder, the licence
shall be liable to be suspended or cancelled in accordance with
provisions of Section.9.
5. The Licensee has not violated the conditions of licence in the past
and no criminal cases have been indicated against the club.
6. No money prizes (cash) shall be awarded in the Tambola.
7. Participation in the entertainment Tambola shall be restricted only
to adult regular members of the club and their families only and
Children below the age of 18 years shall not be allowed to
participate.
8. The Club shall not derive any profit from the conduct of the
entertainment tambola.
9. If the licence is suspended or cancelled for any reason, the
licensee shall not be entitled to any compensation for such
suspension or cancellation or to the refund of any fee paid in
respect thereof.
dated this 17-05-2013,
Signature of the Licensing Authority.
Seal of the Licensing Authority, Designation.
SCHEDULE
1. Description : "To Play Entertainment Tambola"
2. Price of Ticket : "Not exceeding Rs.25/-
3. Prize of Tambola : "Shall not be money prizes"
4. Licence fees : "Rs.15/- per event of Tambola"
5. Special Conditions : (i) Participation in the Entertainment Tambola
shall be restricted only to adult regular member of
the Club and their families only and children
below 18 years shall not be allowed to participate.
(ii) The club shall not derive any profit from the
conduct of the Entertainment Tambola.

E. GOA

Herald cable network used to organise Housie, this was seized by the police and all the
equipment was taken away and was said that even though housie was not defined under
the Gambling Act, it is a fair game of chance and hence would amount to gambling.

“To conduct such activities, necessary permissions from the Home department must be taken, however no
such permission was taken by them.”4

4
https://www.navhindtimes.in/hcns-housie-is-a-gambling-activity-probe/
 F. Finance act, 20105
The act made an amendment to the 1994 Finance act by way of introducing a new
definition in “taxable service” clause i.e Section 65(105) :
“(zzzzn) -to any person, by any other person, for promotion marketing, organising or in
any other manner assisting in organising games of chance, including lottery, Bingo or
Lotto in whatever form or by whatever name called, whether or not conducted through
internet or other electronic networks
Thus, by way of this amendment, the amendment brought in by the 2008 Finance wherein
Game of chance was taxed under “Business Auxiliary Services” was deleted
With the insertion of the new clause (zzzzn) in section 65(105), the explanation to clause (ii)
of Section 65(19) defining Business Auxiliary Service which gave authority to levy service tax
on promotion and marketing of games of chance has been omitted by the Finance Act 1994,
via the Finance Act 2010 Amendment.

5
Finance Act,2010 - http://dpal.kar.nic.in/Central%20Acts&Ordinance%20PDF/Act14of2010%20%20PR-
34.pdf
 II. CASE LAWS

The following is the pertaining judgements which talk about the legality of Tambola.

 GEETA ENTERPRISES AND ORS VS. STATE OF U.P. AND ORS6

Supreme Court of India

This is the case which sheds the most light on whether tambola/housie would come under
the purview of gambling. The following are the pertinent paragraphs of the case.
Facts
The first petitioner is a partnership firm which had launched an entertaining and ingenious enterprise for
the running of a Video Parlour at 3, Chauhan Market, Delhi gate, Agra. The modus operandi of the
petitioner was as follows. A machine with a video screen is installed in the parlour of the petitioner. The
petitioner permits persons to enter the premises without any charge to view a show on the video which consisted
mainly of sports games etc. played on the screen of the video. According to the petitioner he did not charge
any admission fee but the Electronic Machines imported from Japan having educational value for persons
playing the games were meant to provide educational entertainment by showing sea warfare, battle field space
warfare sports and many other things which were likely to provide both education and entertainment to the
viewers, particularly to young children. The mechanism for playing the machine was so designed that a coin
of 50 naya a, paise was to be inserted into a strong box built within the machine, the keys of which-were
with the manufacturer. After the show was ever a representative of the manufacturing company would come,
open the box, collect the money and pay the share of the hirer-petitioner out of the collected sale proceeds. It
was further alleged that no admission or gate entry fee was charged for entering the House or Parlour to
watch or play the game or for entering into the adjacent Snack shops. The shows were operated by an
operator from the audience and 50 paise coin was inserted into the aforesaid box before the show could start.
The charge of inserting the coin was realised only from those who wanted to operate the video machine at the
rate of 50 paise for a show lasting up to 30 seconds.
Crux
The crux of the matter is as to whether or not the show, the details of which have been
described above falls within the four corners of the expression "Entertainment". Sub-
section 3 of Section 2 of the Act may be extracted thus: entertainment" includes any
exhibitional, performance, amusement, game orshort to which persons are admitted for
payment.

6
AIR1983SC 1098
 Findings of the court
Thus, on a consideration of the legal connotation of the word 'entertainment as defined in various books,
and other circumstances of the case as also on a true interpretation of the word as defined in Section 2(3) of
the Act, it follows that the show must pass the following tests to fall within the ambit of the aforesaid section
:
1. that the show, performance, game or sport, etc. must contain a public colour in that the show should be open
to public in a hall, theatre or any other place where members of the public are invited or attend the show.
2. that the show may provide any kind of amusement whether sport, game or even a
performance which requires some amount of skill. In some of the cases, it has been
held that even holding of a tombola in a club hall amounts to entertainment
although the playing of tombola does, to some extent, involves a little skill.
3. that even if admission to the hall may be free but if the exhibitor derives some benefit in terms of money it
would be deemed to be an entertainment.
4. that the duration of the show or the identity of the person who operates the machine and derives pleasure or
entertained or that the operator who pays himself feels entertainment is wholly irrelevant in judging the
actual meaning of the word 'entertainment' as used in Section 2(3) of the Act. So also the fact that the
income derived from the show is shared by one or more persons who run the show.

 S.K. DAS VS. DISTRICT MAGISTRATE7

Gauhati High Court

The crux of this case revolving the issue in question is whether Housie would constitute
gambling under the Public Gambling Act. The learned Senior Government Advocate on
behalf of the opposite party, the District Magistrate of Shillong, whose order is challenged
before us, concedes that the game of 'Housie' is not an act of gambling by itself and this
game is also played in various other Clubs of Shillong. He also concedes that strictly
speaking, the order passed by the learned District Magistrate does not come under any
provision of the law. The court opined that if the act of playing would have constituted
gambling then the Magistrate should have taken appropriate actions. The previous
judgement was quashed that said that Housie would constitute gambling.
The relevant paragraphs in this judgement are-
The petitioner is the Honorary Secretary of the Club known as the 'Evening Club' situate in the town of
Shillong. The Club was registered, under the Societies Registration Act, 1860 as early as 9-8-1951. The
petitioner states that the Club consists of about 500 members and amongst others the object of the Club is
to provide facilities for various indoor and outdoor games including the game of 'Housie'. This appears to
be a popular game, which, according to the statement in the petition and also as admitted by the opposite
party, is played in various other Clubs in Shillong also. The petitioner asserts that this Game does not
constitute any gambling within the meaning of the Public Gambling Act. The Deputy Commissioner of
Shillong by his order, dated 12-9-1952 laid down certain conditions under which the game of 'Housie' was
to be played by the members of the club.

7
AIR1955Gau84
 Previous order was challenged which directed to stop all activities of tombola. The order is challenged by the
petitioner as being entirely uncalled for & without any warrant in law. He contends that the District
Magistrate of Shillong had no jurisdiction to pass such an order stopping the members of the Club from
playing the game of 'Housie' altogether and if the District Magistrate was of opinion that the game of
'Housie' as played in the Club constitutes gambling within the meaning of the Public Gambling Act, then
the proper procedure for him to adopt was to take action under Section 5 of the Public Gambling Act and
not to stop the game of 'Housie' altogether as he purports to have done by the order aforesaid.
The learned Senior Government Advocate on behalf of the opposite party, the District Magistrate of
Shillong, whose order is challenged before us, concedes that the game of 'Housie' is not an act of gambling
by itself and this game is also played in various other Clubs of Shillong. He also concedes that strictly
speaking, the order passed by the learned District Magistrate does not come under any provision of the law.
He, however, submits that the order may be construed as coming within the purview of Section 5, Public
Gambling Act. He also submits that the order amounts to nothing more than recalling the previous order
which had been passed by the Deputy Commissioner on 12-9-1952 imposing certain conditions under which
the game of 'Housie' was allowed to be played by the Club of the petitioner.
We are not convinced, having examined the provisions of Section 5 itself, that any such order could be passed
by the District Magistrate. Section 5, Public Gambling Act is sufficiently expressive. It provides that if the
Magistrate of a district or other officer invested with such powers or the District Superintendent of Police,
have credible information and have reasons to believe on proper enquiry that any place or enclosure is used
as a common gambling house, the officer may himself or authorise someone else to enter on the premises by
force, if necessary, and may take into custody or authorise such officer to take into custody all persons whom
he or such officer finds therein engaged in the act of gaming. It is also open to the officer under the authority
of that section to seize all instruments of gaming and moneys and securities for money and articles of value
reasonably suspected to have been used for the purpose of gambling. This section nowhere authorises the
District Magistrate to pass an order of the kind which he purports to have done stopping the play of the
game of 'Housie' altogether with immediate effect from the date of the order.

 FATEH MAIDAN CLUB VS THE STATE OF TELANGANA AND ANOTHER

ON 9 AUGUST, 2019
Telangana High Court judgement
The relevant paragraphs in the following judgement are-
“This writ petition is filed challenging the order in Memo No.306/Legal/A2/2019, dated 16-07-2019
wherein and whereby the application filed by petitioner for grant of entertainment Tambola licence for the
period from 01-03-2019 to 29-02-2019 is rejected.

Learned counsel for the petitioner submits that for the period from 01-03-2018 to 28-02-2019 the
Government has issued licence vide G.O.Rt.No.1441, dated 03-10-2018 and after lapse of said period,
again the petitioner applied for licence under Section 5 of Telangana Lotteries Act, 1968 (for short "the
Act") by fulfilling all the conditions including payment of fee in advance, but without assigning reasons the
application has been rejected which is in violation of principles of natural justice.”
This infers the fact that in the State of Telangana, a license can be procured for
entertainment tambola for a specific period.
III. CONCLUSION

Keeping into mind all the aforementioned information regarding tambola/housie. It is my

personal opinion that even though the legal stand on this is not clear in India as a whole,
but many states are moving towards banning this activity because of the fact that now it is
being used in bad light in order to make quick money.
Regarding the question of game of chance vs. the game of skill, even though the supremem
court has opined that it involves a little skill but the amount of skill involved, in my opinion
is less than luck involved during the game. Due to which it comes into the dangerous
territory of being banned by the states as a part of their gambling act. No state’s act
specifically mentions housie and/or tambola but as cases are brought in, the government
is banning these organisations for doing the same.