The SIKKIM ELECTRONIC ENTERTAINMENT GAMES (CONTROL AND TAX) ACT,2002

GOVERNMtrI{'I'
SIKX(IM
EX', tAOltDlNAliY
PI !BI-ISI II] D BY AU'I'FIOIiil'Y
GAZE'[''{tr
Gang lok, Tuesda y, 2:t a 2002 No. 114
The foilowing Act of the Sikkim Legislative Asserrib y havlng received the assent oi tte Ctovernor
on 30th day of March, 2002 s hereby publlshed for ge|eral informaticn:-
GOVERNM ENT OF SI(I(I[il
LAW D iPARI!1EII'I'
GANGTOK
NOTtFICA'flON
No.4/LD/2002. Dated the10.4.2002.
conmencenent.
THE SIKKIM ELECl"RONIC ENTEBTAINMENT
GAIMES (CONTBCIL AND TAX) ACf,2002
aDl- NO. 4 0F 2002
] AN
ACT
to provide tor the control and regLi atlon of Electronic Entefiainrnent Games, ancl
to inrpose a tax on Electronic Enlertalnment Games, in lhe State of Sikkitn.
WH E REAS it ls expedient to provide for th e control and reg ulation ot Electron ic
Entertainrnent Garnes, and to jntpose a tax on Electronic Enterlainnteft Gar|es,
in the State of Sikl<im, it ts hereby enacted in the Fllty-Thlrd year of the Repubtic
of lndia as io ows:-
1. (1) ThisActmaybeca ed the Sikkinr Etechont6 Entertatnment Gan]es(Controt and'l-ax) Act, 2002.
(2) lt extends to the whole of the State oi Slkkim.
(3) lt shall conre inlo lorce or such date as the State Government rnay,
by notiflcation n the Otiiclal Gazette appoint.
2. ln this Act, uIless the context otherwise requires, -
(a) "Electronic Eftertaifinent Centre ,, 
mgans a pub ic placb wh ch
provldes or ls Lrsed or is i|tendecl to be used for playing, organizlng or
exhib iit'10 Electronic Entenalnment Ganres;
(b) "Electlonlc Entertainrnent Ga[res,, fi]eans allor any of such games ot
enterla ninent oichance played by means oi any machire or ijlsr
'nrtot as Inay be prescr bed f-om lirne lo time;
Detinitia s-
(c) ' P ace " includcs a llu ld ng or a room or any oiher portlon oi a bui ding
or a tent. enc osLire space, vehicie or vesseli
(d) Plb c place 'lnc udes a
perm ttod to have accoss,
place lo whlch the public have or are
whetlr0r on payment or othen^risei
l]liirtainfietlt
(: a tn !,-5 a n d D),: eiil 11'
tion unatct ih2lavl
(e) Prescr bed means prescrlbed by rLLes made !nder this Aci;
(j) [4aglstrate' means Jud]cla Mag slrate'
(T ) No E ectronlc Entertainmeni Games sha be played, organised or
exhibited to any person ai any pub c place, except at a E ectronic
EntertalnmentaamesCeftre n respectoiwhich llcensels granted in
accordance wlth the provlsions oi this Act and such llcense is ln force
/2) All Not fical orrs or lnstructions or Orders issued from tlme to time
pertaining to gamb lng or wager ng or betting shall not apply to a
Electroni; Entertajnment Games licensed under this Act' or t0 any
i ectronlc Entettaln.ent Ganes played, organized or exh bited at
s!rch Electronic Entertainment Centre.
I i ll' err oe'so' oe.' rl.q lo ob'a 'a .;celse re'eI'ed Io '' sectior 3 shd L
' r.,:l<e an appticatior i- *. iti'gs to tre Stale G )' ernmert' ir sLcT lc'ln
and rnanner as may be Prescribed.
{ 
_ Or rece pl o' s 1' aoo cal'( I lr e S alc Go /er_metl ray' a'le-
., . o ,". 1q.ir, a'.1 .o_'dc-s_eaessS-v oyo'dc'rn'arlirq
eimer 
"g 
rant the ticense o. refuse to grant ihe llcense wllhout assig ning
any reasons l
FrouidJclthat, *nere the State Governmenl refr'lses to grant a license' il
"nalt 
prion lr" te"or.l a brjef stalerncnt oi the reasons for such refusal'
( ll -l_.'ees o1 o:r'_e1' o{ / f 'c|".' e oe' oo Io' v\h -l_ aro I )e cord Lrors
s.o-cctro _.'l a .cer se may be 9'a']leo s.lall besJcl asray'oe
prescrlbed.
rir Tf eSlateGo/era'e t.'al on aporcaL'ol -ade to t re_exI5e
IceT.e Ora^leo -lder L rs Acl. ol palmerlolIreieep-esc''bedl0'
rene,!a;ol a rceas6 o-'e JSe lo relex a1\ s-cn l;ce.rse w tho-t
assignlng any reasons ' blt the reasons for such refusal sha be
stated on lts record.
). \l) -l eSIaleGoverl -e1lmay.aLa1/I-e alergv'rgiheSoderofar/
lice' sc Lroer l' 's A_l a reasoraD'c opoo.lJn'ly oi oeing \edrd'
suspenO or cancel tle license on any one or more of the following
crounds, namely :
(a) that there has been a breach of any of the cond tions subject to
which the license was granted;
{b Ir at Lle '1olde- o f'e oerse l-as cont-arened
s o1s ol i. s Al.l or t re 1 es aoe lrerecrder'
any of ihe Provl-
/21 Whenever a license is suspended or cancelled, ih'" Stale Govern-
'-' runlrl rl recordabri€lstatemenlof thereasonsforsuchsuspenslon
or lancellat on an,l iutnish a copy theloof to 1re persnn whose llcenl;c has
beer'r sLlsPended o/ cance ed.
,'t,,t.:li.-,,lit)t)iai /).
li., :1le !!:,! l:.lec'
t ri rti'1 En!el iril)'
iatll Calrcs atl.i
tti.ltlio! re{usala{
i'!,c iF:e3, Det-iarl.
.,r '-l,ioris eic la
be ptesctibed.
17en.:\t!al/ tefusal
suspend ot
cancel Iinenses
Penalty fai contta-
vention
ol licenses,
Leavy of tax an
stakes at Elec-
trcnic Entettain-
ment Gatnes,
Tax at such rale
not exceeding
25% of al!
rfl oney,
License haldet
to keep accounts
and subtnlt the
Sarne to
Gavemment ot
authorised
Penalty for
failute to keep
and subtnit
accounts,
6. Withoul preiudice to the provlslons oi 1'Ire ast precedl rg scciof, i 1ll!
holder ol any cense Lrfder tlr s Aot or afy persor) eLclifg of h s bcl ,i i itaLs
committedabrcacholanyofthecondtiorrsoithe ioense,lresIarl,orrcoirv!t,ur ,
be punrshed wlth fine which may extend upio filleerl llrcLrsa'rd.trl.rees.
7. (1 ) There shal be levied and colleclcd arrd p.rrd tc tirir Sll.1i'. '.i,,' 
,
out of a nloneys palo or agreed io be pa d by Ll,- )-Lrtiui,- ,
oi stakes at any Eieclronlc Eflerta nment Gar lL::. r'ayell
E ectronlc Eni(:rta nmeft Centre lcensed Lrn(ii.. i .r
raie nol exceed ng 25 per cent ot a sL.lirlr, rr L.l
Gove.nmeft rfay by nol ficallon ln the Oliic ,
behalf. Such port on ol such tnoneys i: r: t,!r ,,...
' taxso evedsllallbedeernedtollavEbflrlllriL ir,ip:11i,.-l
accoLrni of the iax and shalL be col ectc. i I I .
on behalf of the State Govelnltrer ( ilrrci - , .
or an oliicer author sed by lhe Statc Gover r ,, ,,,,,!Ll sur.
manner as nray be prescribed,
(2) The tax payab e urr.ler this AcL shal !e r!u-r,L:, ,:r- ,ir,,,
as ar arTeaT of Land TevenLre.
L Every holder ol a lcense L ndcr this Aci sh3 lie.lf i.L, ,1, i:r cli
Electronic Enierta nrnent GalI]es in such Tfl,r.nner ::r ,i ,,
GoveTnTnent or lo an ofl cer alrthor sed by lhe Statc Li!!r ': ,rl .
statement of accoLrnts ln sLrch fofln and at such inLervil :r r r
Such accounis shall if partrcLr ar show the moneys pa d l.r) \r.:r), or
Electronic EnlertanmentGa.ne played atthe Eecl-oric L:riL!. L L, ri (- i.,,.
and such other part cu ars as may be prescribeai.
9. fany person iab e lrnder the ast preced ng sectior Lo i(cc, .LraoL- Lr:r !,1
to subm t stalernenl of accoLrnts iails to keep accourlts or to subinit glaterrrL:nts
of accounts as required by that sect on or keeps accoLrnts ot sLrbrn 19 srilr! rerts
oi accounts which are fa se and \,\rhich he e;tfier kfows or bel eves to L)c ii.rlse or
does not believe to be trLre, !,vithout prejud ce to the provislons ol sectiirn 5, ho
shal , on conviction, be puJrlsl-red with fine which may extend Lpto jilicci
thousand rupees .
10. (l ) Wtrere an ofl cer authorised by the State Governrnent i. th s be ra i 19
not sat sfled aDout tne correctness or compleieness of lhe ilccounis
kept by any lcensee or wheTe any censee fails to submit a y
siatement of accoLrfts as required by thls Act, the said oificer sha lafter
g v ng a reasonab e opportunity to the licensee to be heard ai)d after
laklng rnto account a I relevant materral which he may have Sathered,
make the assessment ol the tax payable by the censee io the besi of
his judgnrent and call upon the licensee by order in wrii ng lo piiy ihe
amount oi tax so assessed on or belore such date as rnay be specliied
in the order.
(2) Any licensee aggrleved by any ordet made Lrfder sub,section (t ) rrri:ly
appeal against the order to the Staie Gove nrertwithinaperle,r.l
sixty days lrom the date of receipt ol such order anci iirri !iL.lrri 'r:!: :i -,il
by the Stale Government in appeal shal be f na ard shal rroL Lr! u:, s(l :l
qLrest of in any court.
Best ludgement
assessmenf ol
lax In cettaift
cases.
Appeal against the
utdot lo lhe Court-
PenBlly lor cantta-
vettion condiliolls
Dlayitlg F-lecltonic
Entottaintnent
Canes and exhibi-
tion af cotldillons
.f lic€nse by
11 (1) lf any person otier than a licensee whi e playing any E ectronic
Entertainmeft Games at an E ect.or'r c Enterialnment Centre licefsed
!nder tlrls Aci com nits a breacl'r of any o{ the condit ons of the license
as -oxhib ted under sub-sectlon (2) or olthe ru es to be observed in
payifg such games, he shall, on convlcton be punlshed wlth fine
wh ch may extefd up to three ihousand rupees.
(2) Every censeeshall exhib tataprominentplace w thln the Electronlc
Entertainment Centre the co.d iions subjeci to which the icenseis
oranied tc hiri.
I2. (1) Wh-6re an cfience under th s Act has been commltted by a conpany,
every pArson vr'ho ai the t rne the olfence r,T as comrnitted was if charge
of and was Tespons ble to, the co rpany for the conduct of. The
bus ness of the company, as wel as ihe company, shal be deemed
to be gui ty of ihe cifence and sha (,Lr iabLe to be proceeded against
and pun sl]ed accordin0ly l
Provlded that nothifg contained n
'r:r: lrr able to any punishn'rent prov ded
a. "* l'rdl^ifo.tr.:L owedgeo'
'" ir: r ,e Lomm sg on oi --ah off-_ I
this sub'sectiof shall render any such
n th s Act f he proves that the olience
that he exercised all due dilgence to
. (2) Noilv thstandlng anyth ng contained in sub secllon
(1), lvhere ar'r offence irnder this Acl has been committed by a company
and t is proved that the oflence has been comrnitted with the consent
or confivance of, or s aitrlbltab e to any neg ecl on the part of, any
clirector, rnanager, secretary or other offcer of the company, such
direclor, manager secretary or other oflicer shall also be deemed to be
gu ty of that ollence and sha I be iab e to be proceeded agalnsl and
punished accordincly.
Explanation l For the purposes of this sectlon,-
(a) " Co npany ' means a body corporaie, ard lncludes a ilrm or other
assoc at cn of ind v dualsi and
(b) " Dlrector ', n relal on lo a ilr,'n means a partner in the farm.
13. ('1) The Stale Governrneflor any oiflcer authorised by tinthisbehalf
may, either before or afler the instltution oi proceedings ior any
offence punishab e under th s Act or any rules rnade lhereunde.,
accept lrom any person charged with such olience by way ol cornpo
slt on of the ollence such sum not exceeding doub e lhe rnaxlrnum
amouft of line to which he is liab e on conv ct on for such ofiefce. as
may be determined by the State Government or the authorised oJficer,
as the case may be
(2) On paynrent of such surn as inay be determined under sub-section (1),
no further proceed ngs shall be tal(en against the accused person n
respect oj the sarne offence,
14. The State Government or any oificer authorised by it in this behalf may,
lor the purposes oi th s Act, at all reasonable limes, '
(i) require any licensee to produce belore it or him accounts or other
documents or to iurn sh any other informaiion, or
(ii) inspect the acco!fts of any licensee.
Powet Io tequite
pt0ductian af
accaunts ol to
inspect
accounts"
I
Powet of enttY
and search,
Power to make
rules,
Ollences to be
cogtllzable and
bailable.
action taken
undet this acl,
15. r1 ltsl a oe 1^l-r 'or c ) pol:ce o'_'c_r' 'lolo_ov\ l')J'anh o'J"oJl/
i-.rp"'i.,a, a",i..t "0, " ort. o'i'-o o, l''e st:!' Gc e'1'nc1l n I' s oe''a I L/
gene al or SPeclal order Ln /rr I L!
" - 
,r, ,o 01te( ' reccSSar , o) io(ce \ rct1e' oY o:l ?. fllt lill.i]li
asj sle',LS d ) c Lo' o_'S I -Lc! 'a'y al a'l' f L'cUoT o Lntclla 1_
I ellGl_9sC"l te ^l e'e l L 
"as 
ef5o_loileL'e etlotar) orovslorl
of thls act or tfle Iu es made there under are or are being or are ke y
to be contraueled or a breach oi any of the cond tions of tfle I cense
.s o 's 'e.r lo oe co^ -n':l-c'
\D ro so.i'c,ll e o.o e Jlo Il e oe so rs 
^l oln l'e '_J' lrnc Inere r:
., ;;;r," lo 'Jsroo, aroo'odLceoelo ea'-o- d t\4:!'lrJI-d sLcl
oer-o15 oS a'i C_'Le'l.(o Jr aga"'-t!a' O'll d'e'iSOnfOe'o-plarrl
hts Dee- looo'c oooc,r'o lnal,'l lcsbce'l lecel ed o'a
i.?iiil t;rJoi"'i" L'Ltt' n"tg-i"; concerncd with anv \
CO-l.d!ent!.1 Ot O(oj_r.ererrcO "t . ..-SE,1,, at d
td lo selz- a'l' ,. LT^','_roie'llel oeo lo be LSed o- are
reasonab y suspeclod lu l)ave been used ln connectlon w th such
convavent on cr breach
121 ni seircnes unoer lhis section sha be made in accordance wilh the
provislons oi the code oi CIim na Proccdure, I973
16. Al oifences under th s Act shall be cognisab e and baiLab e'
_ 
7. No sJ L p osecLl;or oI otl L',c3- o'olceding sna ' 'ie aOr: sL I 'e Stale
Govel'-e1lo J'/ollice'o Go er''rcr Ito'any:l-"lg wn'cl- ls Igood
la th done or intended to be done under th s Act or the rule made
thereLrnder'
1 g. (1) The State Government may, by notil catlon in the Oillcia Gazette' and
sLrbiect to the cond iion ot previous publlcal on, make rules for carry'
ing o!t lhe PurPoses ol this Act
1Z; tn"particu aianO w thout prejld ce to tfle genera ty of the foregoing
power, such rules may provide lor a or any of the lollowing matiers'
name y :
(a) the gaines of chances / enterla nment whlch shalL be Electronlc
' ' EntJria nment Games for the purposes oi this Act and the ru es to be
obServed ifi PLaY ng such gamesi
(b) the lorm and manner ol rnaklng appllcation ior a license and the lees
to be pa d lor lts grant or renewa and the cond tions sLrbject to which
it may be gra.leCi
(c) the manne; ol keepifg accounts relatlng to a E eclronic Enlertainment
Games, the oltrer parl culars to be shown ln the accounts, and the form
in whlch arrd the intervals at whlch they shall be submltted to ihe State
Governmeat, or to lrle olficer aulhor sed;
(d) the reslrlcllons or cond tlons w th regard to the age or other condit ons
of the persons who may be admitted to, or empLoyed in, an Electronic
Enierialnment Centre or who may be pelmitted to play Electronic
" Entertainrnent Games or otherwise take pari n the organlsalion or
exh bltlorl of sucll games;
(s)
(e)
(f)
(h)
(i)
(i)
tl're oif er reslrict orls or condil ons \rrith regard to the admission oi the
part cipanls and guests to an E ectronlc Entertalnment Games and the
lces Ia,/. loboc-.l g_o'o' ro'admis' o'r:
the ho!rs and days rrhen an Elecironlc Enterta nnrent Ceflro nlay be kept
ihc lypes and spec ficat ons of l'le p aces which rnay be used ior
hous ng an E ectronlc Entertainment Cenier and the localities where
Eleciron c Enterialnment Centre may be situated and the maxlmum
number ot licenses which rnay be granted in any area or locality;
the types oi nollces to be exh biied and the manner n wh ch ihey are
1o be exhlbited ln or outside an Electronic Entertainrnent Cenlre;
the restriciions or coId tions w th reclard to the advertisemenls per
taining to an E ect.onic Enterla nrnent Games;
the restricllons or conditicNs with regard to prov ding cred tfacllities
by the licensee to the parllc panls ln Eicctronjc Enterlainment Games
and tl're proh b iion or regulation ol pa( c pat on by proxy n Electroi] c
Enleria nment Games:
.(k) any otl'rer matler wh ch ls required to be or may be prescribed.
ln making any rule the State Government n-ray djrect that a breach thereof
by a censee or by any person acting on his beha f sha ' on conviction, be
punlshed with line not exceedlng f fteen thousand rupees and a breach
thereof by any olher person sha I on conv ction, be punished w th ilne not
exceed ng.lhree thousand ruPees.
Every rule made under this sect on shall be laid as soon as may be after
i is rnade before ihe House of the State Leg slature while t is ln sessiorl
for a tola per od o{ thlrty days which may be comprised in one session or
n two sLrccessive sessions, and i, before the exp ry ol the session ln whicll
It is so ald or the sessjon immed ate y io owlng, the House agrees in
mak ng any mod fical on n the ru e or the House agrees lhat the rule
shou d-not be made, and notify such dec sion ntheOificial Gazette, ihe
rLrle shall frorlr the date ol publication of such notiflcation have -"flect only
in such modilled form or be ol no efiect, as the case may be; so howevel,
lhat any s!ch mod lication or annLrlment slrall be wiihor.lt prelud ce to tle
valiC ty ol anythifg prevlous y done or omitied to be done under that ru e
By Order ol tfre Governor.
T, D, BINZING,
Secretary to ihe Go\/t. of Sikkim,
LaM/ Department.
F. No. 1 6\82)lD 177 -2402
not exceeding
Rs, 15A00/-,
breach by any
olher petson on
convi.lion wlth
line not exceed-
ing Rs.3000/-
Rules made
shall be laid
belore each
House of
the stale
Legislature,
3)
(4)
THE SUBSEQUENT AMENDMENTS TO THE SIKKIM ELECTRONIC ENTERTAINMENT GAMES (CONTROL
AND TAX)ACT, 2002 (ACT NO. 4 OF 2002) AMENDED AND UPDATED UPTO OCTOBER, 2005. 
I
GOVERNMENT
SIKKIM
EXTRAORDINAFY
PUBLISHED BY AUTHORITY
GAZETTE
No- 370Gangtok
No.13/LD/2005
GOVEFN|l,lENT OF SIKKIM
LAW DEPAFTII,4ENT
GANGTOK
NOTIFICATION
Daled:19/10/09.
Thursday, 20 October, 2005
Tlr€ tollow ng Act ofthe Sikki.n Legisla ve Assemb y hav ng received lhe assenl ol ihe Gove'noron 7th
day oi September, 2005 s hereby PUblished,lo. general lniormalion :'
THE SIKKIIV1 ELECTFONICS ENTEHTAINII]IENT GAi'1ES
(coNTROL ANO TAX) AI\4ENDIr,lENT ACT,2005
(Act No.13 ol 2005)
ACT
ro amend theSkk m E eclronlcs Enlerlainment Games (Conlrcl and Tax) Acl 2002
wllEREAS, lt is deemed exped enl lo amend lhe Sikkim E ectronics Enteitain menl Games (Controland
Tax)Act,2002.
Be it enacted by the LeCis a1u re of Slkklm in lhe Fiily-slxlh Year oi the Republic oi lndia as tollows:
shorr title and 1 (1) This Act nray be caled lhe Sikkim Eleclroncs Enienalnment Games
commencement (Contro a.d Tax) Amsnd nent Acl, 2005.
(2) I shalcome lnlo lo.ce al o.ce.
. . " he Sik{i. Elecro-ics Ll enairnenrGa-es .Co1ro a.o Ia\/ Ac' 2002 (here n.
to.gliue, afterrelerred to as the pI ncipa Acl), in ihelong lltle, prearnble and shotl ti1le, Ior the
p€a,ibeliIe words 'E ectron cs Ente.lainmenl Games" wherever lhey occur, the word casinos"
shall be s!bsrlur6d.
3 Throlghout the principa Aci, lo.lhe words 'Eleclrcnic Entertajnmenl Cenhe and Elec-
lro.ic E.bnai.menl Games" , whereever they occur the wods "Cas nos and Casi.oGames"
shall, respeclively be subsrirrled.
B. K. PURKAYASTHA (SSJS)
LEGAL REIVlEMBHANCEA.CUM. SECRETABY,
LAW OEPAFTMENT
F e No. 10 {82)/LD/2005
s. e. p. a. - a z e 
",, 
u 
" 
n s oi *-6iaiiiid:

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