During the festival of lights the game is played with numbered dice at betting kiosks which are choc-a-bloc with people waiting to try their luck.
There are six icons on the six sides of the dice with the icon turning up the most being the winning one.
Arunachal Pradesh is perhaps the only Indian state where gambling has been legal under the Public Gambling Act, enacted in 1867.
Permits valid for only three days during Diwali to host a betting kiosk cost around Rs 12,000.
Last year around 5000 licenses were issued in the capital city alone and the number perhaps crossed 15,000 in the entire state.
"We have completely banned jhandi munda this time as it causes economic hardships and squandering of money resulting in starvation for many poor families," capital complex magistrate Sanjoy Goel said.
