Bombay High Court Rejects Slot Machine Proposal in Daman

Mumbai | Maharashtra — The Bombay High Court had dismissed a petition seeking permission to operate electronic amusement and slot machines in Daman. The rejection of the petition on the ground that permission cannot be given since there is no legal system in place for such activities in Daman has caused disappointment among hotel operators who were hoping to start casinos or slot machines in hotels.

Since the Union Territory of Daman was attached to Goa before independence, the laws of Goa were applicable to it. However, amendments were made by the Central Government from time to time. However, many laws are still in force as per the Goa Act. Among them is the Goa Public Gambling (Amendment) Act, 1992. Section 13A of the Act allows electronic amusement and slot machines in five-star hotels. This provision was extended to Daman and Diu by a notification issued by the Central Government in 1998.

Based on this Act, a petition was filed before the Bombay High Court seeking permission from the Daman and Diu administration to start 140 electronic amusement-slot machines in a five-star hotel named The Delta in Daman by Delta Corp. In this regard, a bench of Justices Sarang V. Kotwal and Sandesh D. Patil of the High Court ruled that there is no law currently in force in Daman that allows such activities. The bench said that as of today, the operation of slot machines is strictly prohibited and in fact it would be considered an offence.

The petitioner submitted that after the No Objection Certificate (NOC) obtained in 2007 and the rules for granting the license were fixed, the company has invested over ₹450 crore in building a five-star hotel after the notification in 2008. However, the court cited that the rules made in 2008 have no legal basis as the original law was not implemented. The court dismissed the application seeking license to operate slot machines, creating a legal hurdle for hotels hoping to start casinos or slot machines in hotels in Daman.