This article has been written by Shivanii Singh, 2nd year Student studying in South, Calcutta Law College, Calcutta University.
ABSTRACT
This article delves into the topic of online gambling in India . Online gambling is a complicated topic in India from it’s historical perspective. It also emphasizes on the need for a comprehensive policy for regulation of online gambling. This article explores it’s legal concept, it’s definition,the legal framework governing on;ine gambling in India, state lawsa in gamnling,Distinction Between Games of Skill and Games of Chance and recent developments on online gamblimg in India.
INTRODUCTION
Online gambling is the act of participating in gambling activities through the internet by placing bets on games to win prizes or money. Gambling involves three essential components, luck, prize and chance. It involves a chance for people to win exciting prizes and money. Games like gambling has been in India since long time as shown in Mahabharat, where on losing,Yudhisthar lost his kingdom. Public gambling Act 1867 and Information Technology Act 2000 govern online gambling in India.
STATUS OF GAMBLING IN INDIA
Gambling is an age old means of passing time. Gambling has been looked down upon as it has very adverse impact upon the individual and the society. It has the capability of devouring a man completely.
THE PUBLIC GAMBLING ACT 1867
The Public Gambling Act 1867 was brought by British in India which regulated gambling in India which banned betting and gambling in India. In India, common gaming house and common gambling establishments are not allowed in India.
After independence, Indian Constitution brought gaming/betting under list II of 7th schedule of the Constitution giving states the power to regulate gambling in their respective provinces. However in some states like Uttar Pradesh, Madhya Pradesh and Delhi have implemented The Public Gambling Act 1867 .
Public Gaming Act 1867 does not apply to
- Lottery
- Games involving use of skills
iii. Horse racing
According to section 13,gambling on animal and birds fighting was also banned and had severe penalties .
PRIZE COMPETITON ACT 1955
Due to the enforcement of Public Gambling Act 1867,the gambling houses were banned. However this did not reduce gambling in India. People had found it’s alternative. The government introduced the Prize competition Act 1955 to control it. Prize Competitions Act 1955 regulate prize competitions in India. The term ‘Prize competition’ refers to any type of competition (whether it is a cross-word prize competition, a missing-word prize competition, a picture prize competition or any other type) where prizes are given for solving puzzles involving letters, words, or figures. States like Bombay, Madras, Orissa, Uttar Pradesh, Hyderabad, Madhya Bharat, Patiala and East Punjab States Union have enforced thre Prize Competition Act 1955.
R.M.D. Chamarbaugwalla v. Union of India 1957 AIR 628, 1957
R.M.D. Chamarbaugwalla v. Union of India 1957 IS a landmark case in Indian history. The Gambling Act 1867 had not defined game of skill and game of chance. It has only stated that game of chance was illegal and game of skill was legal. It was in this case that the Supreme Court defined “game of skill” and “game of chance” which provided clarity.
In this case, Chamarbaugwalla challenged the prize competition act stating that his competitions were skill based and it was not related to gambling. Therefore it should not be illegal and it was heavily impacting his business.
The Supreme court held that competitions which involved ”skill” does not fall in the definition of gambling. It also distinguished between game of chance and skill.
DISTINGUISHMENT BETWEEN GAME OF CHANCE AND GAME OF SKILL
According to Supreme Court, Games of chance are those games that are played randomly and are based entirely on luck. Games of skill involves using a person’s knowledge and expertise. Horse racing involves some skill . So it is not entirely about gambling. States like Goa, Arunachal Pradesh , Bengal, Sikkam have legalized lotteries.
State of Andhra Pradesh vs. K. Satyanarayana and Ors
The Supreme Court in this landmark case looked at whether rummy is gambling or not.
The respondents were conducting in a club. The police raided the club alleging rumbling to be gambling. It was argued that rumbling involved betting.
The Supreme Court in it’s judgement ruled that rumbling does not fall into gambling. It held that rumbling involves skill rather than pure luck. Rumbling involves strategic planning, memory in picking up cards. However the PRIZE COMPETITON ACT 1955 was upheld partially and rumbling became legal in India.
GOA,DAMAN AND DIU PUBLIC GAMBLING ACT 1976
This act applies to the union territories of goa, daman and diu , thereby regulating gambling in these provinces of India. This act does not apply all over India. This act allowed casino, and sloth machines in goa,sikkim,diu. However it is also specified that gambling should be done with proper license. Absence of license will lead to severe penalties. Goa is one of the very few states where gambling is legalised to an extent.
Dr. K.R. Lakshmanan vs State Of Tamil Nadu And Anr on 12 January, 1996
In this landmark case, the Supreme Court dealt with the question of the legality of horse racing and whether it would be considered ” gambling” or not.
Tamil Nadu had banned horse racing on the pretext that it was a form of gambling. However Dr. K.R. Lakshmanan who was a horse enthusiast challenged the ban.
The Supreme Court in the judgement held that horse racing was not gambling as it involved significant amount of skill. Horse racing is permitted in India with proper license.
THE LOTTERIES REGULATION ACT 1988
The lotteries Regulation Act 1988 was enacted on 7th july , 1988 and enforced on October,2nd,1988. After the act was enforced, there is a complete ban on running lotteries business in any manner. Barring 13 states, sale of lottery is banned in other states.
ONLINE GAMBLING IN INDIA
Fantasy games began in India in 1962. However it gained momentum in 2001.when the super selector fantasy game was introduced in India by ESPN Star sports. Slowly super selector turned into a quiz show
Today fantasy cricket platforms claim to have more than 150 million users
Fantasy games – DEFINITION
Fantasy Apps are part of the Fantasy Sports genre(defined by Indian Law). It is an online game where you create a virtual team of real cricket players and score points depending on how your chosen players perform in real-life matches.
To win a tournament, you must work towards attaining the maximum points and the No. 1 rank on the leader-board. e.g. ICC IPL Fantasy league, IPL 2019 Fantasy league, etc
FANTASY CRICKET GAME
The batting and bowling orders are the most discussed aspect of cricketing strategy in a Fantasy Cricket Match. A slight alteration in the sequence can alter the outcome of the match. The idea is to choose a squad of 11 players from the group of players who will participate in the game.
LEGALITY OF FANTASY GAMING IN INDIA
Shri Varun Gumber v. UT of Chandigarh & Ors
This case established whether fantasy gaming falls under the definition of gambling or not.
Varun Gumber had filed a petition against Dream 11, a fantasy cricket game where it let people to participate in paid online fantasy and the winner will get cash prize
However, the Supreme Court ruled out that fantasy crickets are games of skills and not chance as signitifant amount of skill is needed to set up a team. It is not entirely based on luck unl8ike the traditional gamblings. The supreme court,thriugh it’s judgement, upheld the legality of fantasy gaming in India.
Online gambling is characterized by a lack of uniformity and precision in the laws that vary from state to state. The sole ruling in M/s Gaussian networks Pvt. Ltd. v. Monica Lakhanpal and State of NCT focused on online gambling and made the following statement:
Lakhanpal and State of NCT
The case dealt with the legality of poker in India and whether it should be considered a game of skill or game of chance. The court did not clearly define if poker was purely legal or not. The court emphasized on the lack of clear framework regarding poker in India. The court even stated that there is a need of separate laws for regulation of poker.
Punishment for Illegal Online Gambling in India
There are various risks associated with indulging in Online gambling. The risks varies from financial loss to mental and emotional loss.
These risks result in the theft of personal and financial information of the players or users which further causes the loss of one’s hard-earned money.
Anyone caught gambling in a gaming-house or any similar place using cards, dice, money, or other gaming tools, or anyone present in such a place for the purpose of gambling, will face a fine of up to one hundred rupees or imprisonment for not more than one month, as per the Indian Penal Code. If found in a common gaming-house during gaming, it is assumed they were there for gambling unless proven otherwise.
Information Technology Act, 2000.
This act does not explicitly regulate online gambling. Howev3er it gives government the power to block some illegal websites or foreign websites which can harm the public.
Nagaland:
online gambling laws are regulated in Nagaland by Nagaland Prohibition of Gambling, Prohibition, and Regulation of Online Games of Skills Act, 2015 . This act mainly prohibits games which are solely based on luck, allowing games based on skill.
Sikkim:
Sikkim is one of the very few states in India legalizing online gambling in India, giving licenses to online casinos.
West Bengal: has been the most liberal state when it comes to gambling. Even playing cards is legal here.West Bengal Gambling and Prize Distribution Act, 1957 regulate gambling activities.
Rajasthan: Rajasthan Public Gambling Ordinance, 1949 regulates all gambling activities there. All sorts of betting including online betting are strictly prohibited.
CRITICAL ANALYSIS
A study by a pschiatrist,Robert Breen found that people who play slot machines become addicted to gambling three to four percent faster as comapred to people who play cards.
Fantasy apps are fair but the probability behind winning them is kept a secret. Ironically, it is said that if one puts money into these games, it will turn them into a millionaire someday.
People are putting their livelihood at stake by leaving office and making a team. from the morning people make teams. Once teams are made, people watch the matches even if it is boring till the end. It causes addiction.
This addiction is so strong that even army men are caught up in this. In fantasy games, the winners puts money again thinking that they are clever and people who lost puts money to gain what he has lost. This is a vicious cycle that never ends. This is a kind of disease.
One of the prominent methods of conducting frauds on online gambling platforms is creation of multiple accounts by players who take advantage of this and trick other players thereby rigging the entire process of the gamble/game.
CONCLUSION
Online gambling can become extremely addictive with the lack of proper management. It has the potentiality to destroy a person’s life. The thrill of receiving money from playing a game or placing a bet can be extremely captivating. This is a vicious cycle that never ends. This is a kind of disease. This addiction is so strong that even army men are caught up in this.
The laws related to online gambling is unclear. While the Supreme court has ruled about it’s legality, it causes severe harm to an indivisual.
REFERENCES
1.Shri Varun Gumber v. Union Territory of Chandigarh, 2017 (4) RCR (Civil) 196 (P&H), available at Indian Kanoon.
2.Bhargav Ditani, Fantasy Cricket (GitHub repository), available at https://github.com/bhargavditani/Fantasy-Cricket.
3.Shubham Pareek, What is a Fantasy App?, LinkedIn (July 23, 2021), available at https://www.linkedin.com/pulse/what-fantasy-app-shubham-pareek.
4.Laws and Regulations Governing Online Gambling in India, Free Law (Feb. 3, 2022), available at https://www.freelaw.in/legalarticles/Laws-and-Regulations-Governing-Online-Gambling-in-India.
5.Online Gambling: Still Confusion?, iPleaders (July 8, 2022), available at https://blog.ipleaders.in/online-gambling-still-confusion/.
6.Understanding Online Gambling Laws in India, YouTube (uploaded Mar. 1, 2021), available at https://www.youtube.com/watch?v=NVoVEE1jp78.
7.The Rise of Online Gambling in India, YouTube (uploaded Jan. 10, 2022), available at https://www.youtube.com/watch?v=KPuJGydSuhk.
8.State of Andhra Pradesh v. K. Satyanarayana, (1968) 2 SCC 362.
