Supreme Court of India adjourns Maharashtra Casino Law case by two weeks

The Supreme Court of India has adjourned for two weeks a petition challenging the repeal of the Maharashtra Casinos (Control and Tax) Act, 1976. The case, filed by Dyutbhumi Hotels and Resorts Pvt Ltd, was scheduled for hearing on April 21.

The petitioner, formerly known as Mumbai Gambling Management Pvt Ltd, is seeking to revive the 1976 law that aimed to establish a regulated casino industry in Maharashtra.

The company said that the state's decision to repeal the law in 2023 is unconstitutional and is requesting the Supreme Court to reinstate the legislation, which was passed but never implemented.

The 1976 Act proposed a licensing framework for casino operations, allowing gaming only within state-approved venues and subjecting them to a gambling tax of up to 25%. Despite its passage in the Maharashtra Legislative Assembly, the law was never notified. In February 2023, the state government formally repealed it.

Earlier this year, the Bombay High Court dismissed the petition. A bench comprising Justices Girish Kulkarni and Advait Sethna ruled that the act had never been in force, describing it as “deeply buried.” The court concluded that reviving the statute was legally untenable, calling the attempt “an impossibility and a far-fetched expectation.”

The High Court also rejected claims that the repeal was ultra vires or beyond the state government’s powers. According to Indian constitutional law, a statute can only be struck down as ultra vires if it infringes upon fundamental rights or violates constitutional provisions — conditions the court found inapplicable in this case.

After the High Court’s rejection, the case was taken to the Supreme Court. The petitioner also asked for an exemption from submitting a certified copy of the previous judgment and requested the Maharashtra government to reconsider its application to operate casinos in the state.

Gambling remains banned in Maharashtra under the Bombay Prevention of Gambling Act, 1887, except for horse racing and skill-based games. Casinos are legal only in the states of Goa, Daman, and Sikkim.