Should Betting Be Legalized In India?

Introduction

A fundamental aspect of human nature is betting. It permeates every aspect of Indian society. People view it as a respectable form of recreation, whether be horse racing wagering or street animal fights. Despite the fact that it’s against the law to bet on sporting events, such as cricket matches, many people still do so and end up losing money.[i] Due to their inability to recognize appropriate time to stop, people get trapped in gambling cycle.

Gaming Sector in India

[Image Sources : Shutterstock]

If the players know how to play patiently and strategically, gambling or betting is not a bad trap. “Betting” in sports refers to the act or practice of speculating the results of athletic events.[ii] Sports are now very popular, and betting makes them lucrative, albeit illegal, industry worth millions of dollars. Sports including cricket, hockey, football, horse racing, and badminton all have results that can be gambled on, with cricket betting being most common in India. The author will evaluate the state of sports betting in India at the moment.

Current status of betting in India

The Public Gambling Act of 1867 forbids gambling under the current legal system.[iii] As defined under Section 2(b) of the legislation, gaming includes wagering or betting but excludes lotteries. The law that was in effect in India’s territory before the commencement of this Constitution shall continue to be in effect there, unless it’s altered, repealed, or amended by competent legislature or other competent authority, according to Article 372(1) of the Indian Constitution. This is true even though the enactments mentioned in Article 395 are repealed by this Constitution. The seventh schedule of the Constitution’s Entry 62 State List grants state legislature, the power to create tax and gaming regulations.

A multimillion-dollar underground industry exists for sports betting. Additionally, the FICCI projected that in 2016, the illicit market was valued approx. Rs. 10 lakh crores.[iv] Even if legalization doesn’t entirely purge gambling sector, mandating that operators maintain both electronic and physical records would be beneficial. Thousands of young individuals are employed nationwide by this uncontrolled sector.

Why betting in sports be legalized?

The illicit gambling and gaming sector in India is substantial economically, and this is one of the main justifications for legalizing and regulating it.[v] As previously stated, illicit gambling is quite prevalent in India, with betting on athletic events being the most common kind. Both the money and number of individuals engaged are enormous. Criminal organizations handle unexplained funds gained through gaming operations, which are used for evil purposes like financing terrorism.[vi] Legalizing betting will not only stop it, but the government may also use the revenue generated for variety of beneficial social programmes. The number of participants is one of the main points of contention. Of course, this is the same justification offered by those who support legalization/regulation of both narcotics and prostitution.[vii] The huge number of “lawbreakers” and the ensuing possibly enormous time drain on police if law is effectively enforced makes it extremely difficult to enforce these laws.

In Humphrey v. Viacom[viii], the plaintiff argued that because the points received by the players are mostly decided by chance, taking into acc injuries and other random situations, the entry fees paid to participate in these games are sort of wager. The court rejected the petition, stating that selecting players for a virtual team involves a lot of analytical skill and knowledge.

The Nagaland Prohibition of Gambling and Promotion of Online Games of Skill Act, 2005 was adopted in Nagaland, India, and it covers fantasy sports as a “game of skill.”[ix] A ruling from the High Court of Punjab and Haryana[x] declaring Dream 11 to be predominantly a skill-based game. The High Court rejected the petition, drawing parallels to the R. Lakshman ruling in its decision. It went to say that participating in fantasy sports requires a person to have high level of analytical skill, prudence, and judgement. The court accepted respondent Dream 11’s arguments that participation in fantasy sports requires the ability to evaluate match circumstances.

The following are some possible actions the government might take

  1. As gaming is under the purview of the state government, a constitutional change would be required. Therefore, it should first be included to concurrent lists so that parliament can pass legislation on the topic without any obstacles.
  2. In order to safeguard public interests and prevent harm, the government should limit the number of transactions permitted within a certain time frame and keep an eye on the risks involved by tying account to either PAN or AADHAAR cards.[xi]
  3. The government should enable FDI in this industry to avoid financial strain on states that want to establish casinos and other forms of gaming. So that money may be invested in each state’s infrastructure and other needs. This will increase tourism, which will increase employment opportunities and state revenue.

Conclusion

In my opinion, there isn’t a strong case for legalizing betting in India now. Even if India were to consider such shift in policy, there are number of significant and difficult steps that must be taken first. I arrive at this conclusion that, at this time, the how (how can it be legalized) question has to be given less consideration than the why question (why should betting be permitted). Through well planned ethnographic and epidemiological research, the why question should be supported by empirical facts. Numerous courts have consistently maintained in their rulings that wagering on sports like cricket, football, and hockey requires knowledge and ability of the person placing wager, much like in horse racing. Legalizing sports betting will aid in controlling this disorganised sector and the dangers arriving from underground markets. If the sector is legally controlled, the government can acquire money as taxes. Legalizing sports betting in India will enhance tourists, tax income, and employment. In India, legalizing sports betting is unquestionably necessary.

Author: Tanisha Jain, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at Khurana & Khurana, Advocates and IP Attorney

REFRENCES

[i] https://www.legalserviceindia.com/legal/article-2966-should-gambling-be-legalised-in-india-.html

[ii] file:///C:/Users/hp/Downloads/Legalization-of-Betting-in-Sports-in-India.pdf

[iii] The Public Gambling Act, 1867

[iv] Legalization-of-Betting-in-Sports-in-India.pdf

[v] https://journals.sagepub.com/doi/full/10.1177/0253717620928761

[vi] https://www.legalserviceindia.com/legal/article-2966-should-gambling-be-legalised-in-india-.html

[vii] Chatterton E. History of the church of England in India since the early days of the East India Company, London

[viii] 2007

[ix] Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, (2016)

[x] Sri Varun Gumber v. The Union Territory of Chandigarh & Ors, 2017

[xi] https://www.legalserviceindia.com/legal/article-2966-should-gambling-be-legalised-in-india-.html

Leave a Reply

Categories

Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • September 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010