Reports from local press indicate political leaders were among those held for investigation on 5 November after information was supplied describing illegal activities at the Sea Princess Hotel in Juhu.
Social activist Musa Shaikh filed a complaint with the police.
Gambling in India is heavily restricted except for specific categories including lotteries, horseracing and rummy, a card game the Indian Supreme Court describes as a game of skill.
Certain states do allow gambling to take place during festivals, such as Holi and Diwali, the latter occurring on 7 November this year, but only when it happens among friends and not in a public space.
Gambling during Diwali has religious connotations and is considered auspicious.
The courts have therefore stated a person allowing his home to the use of gambling during Diwali will not be said to be keeping a common gaming house.
This report follows arrests in Goa last weekend, where 11 individuals were held and around $2,468 was seized.
The North Goa Superintendent of Police was said to have raided a card game during a routine patrol of the area.
