Betting Is Legal In India Or Not
Being a large-scale international sports betting company, it attracts tons of sports fanatics from across the globe, especially India. The poker room is a new addition to its broad collection of gambling products.
- Is Gambling Is Legal In India
- Betting Is Legal In India Or Not Applicable
- Why Betting Is Illegal In India
- Betting Is Legal In India Or Not Allowed
Online Gaming/Gambling laws in India prohibit betting or wagering and any act which is intended to aid or facilitate the same. Gaming/Gambling being a State subject, gaming/gambling in India have laws which differ from state to state . This would mean what is permitted in one State may be an offence in another. The Public Gambling Act, 1867, is the central enactment on the subject, which has been adopted by certain states of India like Uttar Pradesh, Punjab, Madhya Pradesh etc. The other States have enacted their own legislation to regulate gaming / gambling in India activities within its territory. It is to be noted that State Legislations have been enacted prior to the advent of virtual / online gambling in India and therefore references of gaming/gambling in India, in respective state legislatures are in relation to physical premises only, barring Sikkim and Nagaland which are the only States who have introduced regulations pertaining the online gaming.
- The legality of Online Gaming in India. For some people, gambling is considered a practice associated with religion, and to others, the authenticity of legal betting is not clear. While betting is illegal in most states in India, betting laws vary from one state to another.
- Live betting or not, gambling online is just the same as ever. The only difference now is the thrills that come with live betting. With that said, you can have live bets on almost all sports that allows regular betting; these include: Cricket. Cricket is one of the biggest sports in India.
After going through the State gambling laws for online gambling in India, it is found that, except the State of Orissa and Assam, most of the States have excluded ‘games of skill’ from applicability of its respective gaming/gambling laws. Further, playing certain games including ‘Poker’, both online and offline, is permitted under the laws of West Bengal, Nagaland and Sikkim subject to licence from the appropriate State Authorities. But this would be applicable only in the territorial limits of the respective State. In Goa, gambling is permitted only in Government permitted places operated as casinos.
The issue of online gambling in India laws in India still remains a grey area which is yet to be adjudicated by Courts of India. Having said that, necessary inferences can be drawn from orders passed by the Court while deciding the issue of whether a particular game is a ‘game of skill’ or a ‘game of chance’. But the issue of whether a ‘game of chance’, if played like a sport without stakes amount to gambling or not? still remains largely undecided.
Game of Skill v. Game of Chance:
There has been a substantial discussion by Supreme Court and High Court on what constitutes a ‘game of skill’ and a ‘game of chance’. What is adduced from the judgments is that a game where there is preponderance of skill over chance is a ‘game of skill’ and vice-versa.
By taking the above ratio into account, SC in the matter of State of AP v. K.Satyanarayana(1968) held the game of Rummy to be a ‘game of skill’. However, the Court in its judgment has indicated that if there is gambling or if the gambling house is making profit from the game of rummy, then it could amount to an offense under the laws of AP. It was further observed by SC that the three card game which goes under different names such as flush, brag, etc. is a game of pure chance. This was relied upon by SC in another its other judgments viz. M.J.Sivani v. State of Karnataka (1995) and Dr. K.R. Lakshmanan vs State Of Tamil Nadu And Anr (1996).
The issue of whether rummy if played with stakes amounts to gambling or not has not been decided by Supreme Court. However, Andra Pradesh High Court in D. Krishna Kumar And Anr. vs State Of A.P.(2002) (Annexure-2) relying upon the SC decision of 1968 held that till such time the state gambling Act is amended to lay down that playing Rummy with stakes is 'gaming', playing Rummy with stakes is not 'gaming' within the meaning of the Act and is therefore allowed.
Delhi District Court: Gaussian Network Pvt. Ltd. Vs. Monica Lakhanpal
The issue of Online Gaming/gambling laws in India was discussed in detailed in the above case when the issue was put up before the Court under Order 36 Rule(1) of CPC by the parties. The Court held the following:
- Game of skills, if played with stakes does not amount to gambling;
- Playing games of skill for money is only legal in the real form, online games cannot be compared to real games;
- Attracting business or enticing players by alluring them with prize money is illegal;
- Gaming sites partaking a slice on the winning hand are illegal as they amount to a virtual gambling house.
Having said that, the said ruling was rendered infructuous as during the final arguments in the Revision petition, parties sought to withdraw the petition. So the effect being there is no ruling which can be treated as a precedent as regards online gambling.
Gujarat High Court on Poker:
The issue whether Poker is a ‘game of skill’ or a ‘game of chance’ was never discussed in detail by any Court in India until the recent decision/order dated December 4, 2017 passed by Gujrat High Court in Dominance Games Pvt. Ltd. V. State of Gujarat, wherein, the said issue was extensively pondered upon. The Court in its said decision held that Poker is a ‘game of chance’ and therefore amounts to gambling under Gujarat Prevention of Gambling Act, 1887. While arriving at the aforesaid decision, the Court inter alia observed the following:
- That the game of poker originated from ‘flush’ or ‘Indian teenpatti’ which has been observed by SC as a game of chance in its 1968 judgment and consequently, as a corollary, the game of poker is also to be construed as a game of chance;
- The game of poker involves a process wherein the players have no control or say on the cards received by them and the final outcome is based on mere luck or chance depending upon how the cards are received by the player. Poker face to bet, would be a part of bluffing or deception and the so-called strategy, cannot be considered as a skill. The outcome also depends on the ability of a player to spend money and how deep are his pockets. It is a game of deceiving, bluffing and duping other players;
- The game of Rummy is different than Poker. While poker involves betting or wagering, rummy has nothing to do with stakes and betting or wagering is not essential to the game of rummy;
- The Court while noting the ills of gambling and impact of gambling on the moral fibre of society noted that ‘one must not overlook the ground realities in India or the country like India, where the majority of the population is struggling for the basic necessity and there is lack of awareness amongst the people and if they are permitted by betting in the craze of easy money, they do not know what to do if the things go wrong.’
Mr. K.N Suresh, Secretary of Indian Poker Association has filed an appeal against the said order, being Letters Patent Appeal No. 2625 of 2017 before the Division Bench of Gujarat High Court. The bench after hearing the matter briefly on December 28, 2017 issued notice to the state government and other respondents, and till date the matter is not heard finally. Having said that, since no ad-interim/interim reliefs are granted presently, the Single Judge order stands valid and enforceable.
Though the order does not specifically make any observation on Poker, if played as a sport and/or without stakes, however, while differentiating between rummy and poker, the Hon’ble Court at para 60 of the said order makes a presumption that wagering or betting is an inseparable part of the game of poker and therefore would involve stake. The Court while holding Poker to be a ‘game of chance’ has also predominantly relied upon moral religious and social grounds. In the absence of the said order being overruled and the issue being addressed specifically, the game of poker, even if played as a sport and/or without stakes remains a grey area which is then left at the discretion of police authorities.
POSITION:
Though the issue of Poker was considered by Gujarat High Court in view of the provisions of Gujarat Prevention of Gambling Act, 1887, in arriving at the decision of Poker being a ‘game of chance’, the court made several observations like how the game is played, origin of the game, reference to ancient Indian literature, moral and religious grounds, etc. which may be applied by other states/state machinery having similar gambling laws. The issue is likely to be clarified by Division Bench of Gujarat High Court, once the appeal is finally heard.
In view of the above, it is clear that if a game is considered to be a ‘game of chance’ under the state laws and rulings by the Courts and is played with stakes, would constitute gambling under the respective state laws with exception pertaining to a few states as mentioned above. If an entity is able to show that a particular online game or a particular on-ground gaming activity has preponderance of skill over chance and/or is played as a sport without stakes, it may fall within the exception of gaming/gambling under the state gambling laws. It is pertinent to note however that if online gaming is illegal in any State, the promotion of the same in such State would amount to violation of ASCI Code as well as Cable TV Network Regulation Act, 1994.
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It’s the penultimate over of the match between India and New Zealand. Emotions are running high, and it’s one of those events that is bound to keep you on the edge of your seat.
Rakesh Mehra is watching this match in his room in Delhi and continuously monitoring a popular cricket website on his laptop. He has made at least a dozen phone calls in the last 15 minutes.
Rakesh has been calling his bookie to increase his stakes in India’s victory. The match ends with India winning thus making Rakesh richer by a few lakh rupees.
According to the All India Gaming Federation, India loses almost 2 lakh crore every year, due to illegal betting on cricket. If you watch cricket or have even a faint interest in it, you might know that bets are placed on almost every aspect of the game and not just the ultimate result of the match. From the toss, to how a particular player will fare, to the outcome of a specific delivery, there’s a wide range of options to bet on.
Gone are the days when bookies were shady operatives operating from dingy hideouts. Betting is now a sophisticated and globalised operation. One thing that has not changed is the kind of people who are the principals of the business. The nexus between the underworld and betting is no secret.
After the 2013 IPL match-fixing scandal, a three-member panel appointed by the Supreme Court headed by chairperson RM Lodha recommended legalising cricket betting in India.
Following this recommendation, the Law Commission solicited the views of citizens on betting as well as gambling.
Law Commission chairman Justice B S Chauhan also said, “Various media reports time and again point out that betting and gambling, though not legal in India, is practised across the country clandestinely. These reports argue that many families are rendered bankrupt, and many people are behind bars owing to these practices.” By seeking to bring this “industry” from outside the purview of the law, into the legal system, the aim is two-fold—by making it legal, the “industry” attracts the right kind of sponsors, thereby taking it out of the clutches of the current controllers, i.e. the underworld. The second objective is that it can be better controlled and regulated to put in place measures that protect citizens from financial ruin.
We, at The Better India, spoke to Jay Sayta, the founder of GLaws.in which is a first of its kind website in India monitoring law developments on gambling.
Is Gambling Is Legal In India
He says, “In my opinion it would be premature to celebrate this yet. It is merely a law commission recommendation, which may or may not be taken into consideration. Even if it does, I do not see any movement happening for atleast another 5 years.”
What is the current status on betting in India?
While countries like South Africa and the United Kingdom have a legal system which allows people to participate in betting, it is considered to be illegal in India. Bookies use foreign betting websites to place their bets and make some money.
There are a few who believe that betting through the legal websites is legal as the websites receive their payments via digital wallet and technically no laws are broken.
However, even if the sites are legitimate, gambling in India is still considered to be a crime.
A paper published by the Federation of Indian Chambers of Commerce and Industry (FICCI) for its conference titled ‘Regulating Sports Betting in India: A Vice To Be Tamed’ showed that an overwhelming 74 percent of respondents believed that legalising sports betting would help curb match-fixing.
Betting Is Legal In India Or Not Applicable
The FICCI report also lays down solid recommendations in favour of legalising betting in cricket in India:
1. Protection for the young and vulnerable against the dangers of unwise betting behaviour.
2. Employment generation (more than 8000 people are employed in casinos in Goa).
3. A fair and more trusted betting experience for consumers with entertainment in a controlled and responsible way which they can trust.
4. Strike against organised crime like match-fixing which threaten to damage public trust both in sports and in the legitimate betting industry.
Why Betting Is Illegal In India
5. Taxation revenues for sports development and preventing sport betting from being linked to criminality or used to launder the proceeds of crime.
6. Protecting players, coaches and all involved with the sport from unscrupulous approaches.
7. Generating substantial revenues.