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LEGAL STATUS OF ONLINE GAMBLING IN INDIA

Divya M.B.


WHAT IS GAMBLING?

The act of playing for stakes in the hope of winning which includes the payment of a price for a chance to win a prize.


IS GAMBLING ILLEGAL IN INDIA? ?

Yes. The Offline industry of gambling, wagering in physical gaming houses and betting has been prohibited.


WHO HAS THE AUTHORITY TO MAKE LAWS ON THE SUBJECT OF “BETTING & GAMBLING”?

State Government (Entry Number 34 of State List/List II)


WHICH LEGISLATION PROHIBITS GAMBLING IN INDIA?

The Public Gaming Act, 1867


WHAT DOES THE ACT SAY?

The Act made it clear that it is illegal either to operate a venue where the gambling took place or to visit such a place.


WHETHER THE PUBLIC GAMBLING ACT, 1867 DEFINES GAMBLING?

No, but Indian Constitution, 1950 defines gambling as, “ any activity or undertaking whose determination is influenced or controlled by

  • chance

  • accident

  • any activity/undertaking

which is entered into or undertaken with a consciousness of the risk of winning or

losing.


WHAT IF A PERSON OPERATES OR VISITS A VENUE WHERE GAMBLING HAS TAKEN PLACE?

Section 4 of the Public Gaming Act, 1867 mentions that the penalty is the payment of a fine of Rs.200 or imprisonment up to 3 months for operating a venue where gambling took place and the payment of a fine of Rs.100 or imprisonment up to 1 month.


WHETHER THE ACT PROHIBITS BETTING/GAMBLING IN ALL GAMES?

No. Section 12 of the Act states that the Act doesn’t prohibit the games involving skill.


ON WHAT BASIS GAMBLING WAS DECLARED AS LEGAL OR ILLEGAL?

  • Game of skill – Legal

  • Game of chance – Illegal


IS THERE ANY JUDGEMENT WHICH RECOGNISED GAMBLING AS LEGAL ON THE BASIS OF SKILL ?

In the State of Andhra Pradesh vs. Satyanarayana, the Supreme Court held that the game of rummy is a game of skill as the fall of cards needs to be memorised and a required skill is needed in holding and discarding the cards for building up rummy.


WHETHER BETTING IN HORSE RACING LEGAL IN INDIA ?

Yes. Betting on horse racing has been legalised at the state level.


WHETHER LOTTERIES ARE STRICTLY PROHIBITED IN INDIA?

No. Only in certain States, lotteries, which is another form of gambling, is banned.


WHICH STATUTE REGULATES LOTTERIES?

The Lotteries (Regulation) Act, 1998.


WHAT DOES THE ACT SPECIFY?

  • Gives the state governments the right to authorise lotteries within their jurisdictions.

  • Provides a maximum of one draw per week was to be allowed.


IS CASINO GAMBLING LEGAL IN INDIA ?

Only two state governments in India have legalised casino gambling. They are:

  1. Goa

  2. Sikkim


IS ONLINE GAMBLING ILLEGAL IN INDIA?

No statute prohibits online gambling in India.


DOES THE PUBLIC GAMING ACT, 1867 CONTAIN ANY REFERENCE TO THE ONLINE GAMBLING?

No, because the internet was not contemplated at the time of framing the Act.


DOES THE INFORMATION TECHNOLOGY ACT, 2000 MENTION ABOUT ONLINE GAMBLING?

No. Only gives the power to the Government of India to block foreign websites.


IS THERE ANY LEGISLATION THAT REGULATES ONLINE GAMBLING IN INDIA?

Yes, two States have introduced legislation specifically to online gambling. They are:

  1. Maharashtra (completely prohibited)

  2. Sikkim (regulated gambling)


HOW INDIAN GAMBLING LAWS CAN BE IMPROVED?

  1. Public Gaming Act, 1867 must be amended with respect to the current scenario.

  2. While depositing to gambling sites in a currency other than rupees, it should be considered as an exchange of foreign currencies and covered by the Foreign Exchange Management Act, 1999 which was introduced to govern the foreign currencies exchange.

  3. The most urgent need of the hour is a specific internet gambling law to prohibit/regulate online gambling in each state.

  4. There is no doubt that gambling can be a huge source of revenue for the state but an introduction of legal gambling in India is required to get rid of the illegal bets.



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