You cant launch website...there are no specific laws in India dealing with Internet gambling, online lottery and betting, however these activities are considered illegal, based upon the current government position on gambling in general. Gambling per se is an offence since it does not involve skill and has been explicitly prohibited under the Public Gambling Act of 1867.
The Public Gambling Act under Section (3) of lays down "Penalty for owning or keeping, or having charge of a gaming-house". According to this section if the owner or occupier, or any other person having the use or charge, care or management of any house, opens, keeps or uses the same as a 'common gaming-house' and knowingly or willfully permits the same to be occupied, used or kept by any other person as a 'common gaming-house' shall be liable to a fine not exceeding two-hundred rupees, or to imprisonment for any term not exceeding three months, as defined in the Indian Penal Code (45 of 1860).
This section further lays down that whoever, advances or furnishes money for the purpose of gambling with persons frequenting such 'gaming-house' or in any manner assists in conducting, the business of such 'common gaming-house', in keeping it opened, occupied, used or kept for the purpose of being used as a 'common gaming-house' shall be liable to a fine not exceeding two-hundred rupees, or to imprisonment for any term not exceeding three months.
Thus the Public Gambling Act, makes gambling illegal i.e. when it's made a business to earn a profit or a commission
IT Act has extra territorial jurisdiction with regard to computer related offence committed in India. Besides personal jurisdiction has also been exercised in several international cases involving the internet and the court asserted personal jurisdiction based on the nature of the 'gambling operations' web sited coupled with the intent to solicit business with residents of the other states as in US caseMissouri ex rel. Nixon v. Interactive Gaming & Communications Corp and also in In State of Minnesota v. Granite Gate Resorts, Inc.."
Although there are no laws that bar internet gambling specifically, the official government stance is that the existing laws governing gambling offline is sufficient enough to curb Internet gambling as well.