“ILLEGAL GAMBLING: TEMPTING, RISKY, ADDICTIVE”

ILLEGAL GAMBLING

Author : Tanvi Gupta

Gambling is an impulse control disorder wherein individuals fail to control their impulses to gamble, even after knowing the detrimental effects it has on them and their loved ones.

Introduction:

Games have always been a source of recreation but gambling is often not considered good form of recreation. Indians have been indulged in gambling even before the discovery of dice by using Bibhitaki tree as dice. Even Mahabharata depicts existence of game of board and dice. Over the years, there has been a paradigm shift in gaming industry. From traditional casinos to Online gambling it has influenced the youth by making them addicted.

The emergence of Internet and easy availability has led to more consumption of content and exposure to more resources. The reports issued by the International Centre for Sports Security claims that India has US $130 billion industry alone.  

Around the IPL and various cricket matches people are found indulged in illegal gambling. The major issue with gambling is public health issue because of its effect on vulnerable groups and their family. Casino increases the risk of crime, extortions, blackmailing which causes bad impact on the society.

Laws pertaining to gambling in India

The Public Gaming Act, 1867 is the act responsible to make gambling in India a grey area. It is considered illegal when played with an intention to earn profit or make business. This act was made during British Era and is still applicable in India.

This act prohibits owning any house for gambling, playing such games in public places and lending money for such purpose. There exists a hiatus that leaves room for obscure interpretations resulting in risk vs reward situation for online gaming and lottery companies.

Indian Law holds equal place for both casino owner and customer in case they get caught in illegal gambling Owners of such venues face a fine of ₹200 or imprisonment of up to 3 months, while customers will have to pay a ₹100 fine or end up in prison for a month. As per Goa, Daman and Diu Public Gambling Act, 1976 both tourists and Indian can experience traditional casino games in five-star hotels with aim to prevent all interested entrepreneurs from simply running casino business.

As per latest amendment, the casino owners ought to pay out Rs five crore in order to run a casino instead of Rs one crore as license fee earlier. As per Section 9[1], if any person owns common housing game, it is not necessary to prove he was found playing at that time.

Exception to gambling

Gambling Laws doesn’t include wagering on horse, games of “mere skill” and lotteries as per Law as illegal gambling. The Supreme Court held in the case of Dr. K.R. Lakshman v State of Tamil Nadu and Anr.[2]

That competitions where success depends on substantial degree of skills are not gambling where mere skill would mean substantial degree or preponderance of skill.

Moreover, in the Landmark Judgement of M/s Gaussian Network vs Monika Lakhanpal[3] the court differentiated between skill required while playing game online and offline while emphasizing on the latter.

There are certain conditions which need to be fulfilled before betting on horse racing. The turf clubs where the horse races are held operate under a license from the respective State governments.

In the case of Guru Prasad Biswas & Anr. vs State of West Bengal & Ors[4]. The court upheld that horse racing requires special ability. While speed and stamina of horse is built after proper training, when two horses are at equal level a better trained jockey can touch the winning post.

Hence Horse riding is support dependent on mere skill. On similar footing rummy was declared as a game of skill involved in various case laws.

Online gambling

The major loophole in gambling laws is they do not expressly contemplate online gambling as they were introduced long back before emergence of technology.

The Central Government has no jurisdiction over Online Gambling. While police have in the past arrested people for allegedly running inter-state betting racket on the results of the IPL matches. However, such activity continues unabated on the internet through a complex secretive network of websites that permit Indian bookies to bet on fallout of matches being played in India or internationally.

In fact, some website allows such “players” bet on actual outcome of each ball, over and innings. Many of these websites operate on invitation only basis to avoid disclosing their modus operandi to the authorities. Hence in general terms an individual cannot have access to the actual action unless he has been invited by one of the safe players who are already a member.[5]

States such as Sikkim and Nagaland are only states to formulate specific legislation for regulating online gambling. The Sikkim Regulation Act 2005 has given the power to authorities to allow gambling on certain days and to prohibit it in certain days.

Further, the state of Telangana has amended the Gambling Legislation applicable to Telangana as an amendment to the legislation, which inter alia, expands the scope of offences to apply to the online medium as well.

Hence if any Indian is found involved in International gambling, he would be declared guilty only if gambling is illegal in the country where the website is hosted.

Although as per Entry no. 34 of State List gambling is a state subject, the regulations of websites, electronic modes of payment are subjects covered by Centre. Information Technology Act, 2000 restricts online payments to illegal websites by instructing Internet Service Providers to restrict and block access to certain websites.

Intermediaries (such as Internet Service Providers/ISPs) must comply with intermediary compliance and due diligence requirements. The act prohibits online gambling activities and imposes a punishment for persons indulging in such activities, would be fined Indian Rupees 100,000 or would receive imprisonment of up to 5 years.[6]

In 2008 the Payment and Settlement Systems Act, 2007 was enforced which as per Section 4 gives authority to the Reserve Bank of India (RBI) to regulate all forms of electronic payment.[7]

Furthermore, as per Foreign Exchange Management Act, it is illegal to fund online sites without using Rupees as a currency. However very few sites give this option of withdrawing in same currency and hence people use E-mode for payment.

Conclusion:

Gambling has its roots from British Era and cannot be completely done away as it is a good source of income for the States and a major attraction for tourists in places like Goa and Sikkim.

The government can take preventive measures by providing exhaustive laws in different types of games online, offline, offshore and international gambling. The study shows indulging in gambling is an addiction, therefore government must use some source of tax income to build rehabilitation centre.


[1] The Public Gambling Act, 1867

[2] (1996) 2 SCC 226

[3] Suit No. 32 of 2012

[4] (1998) 2 CALLT 215 HC

[5] https://www.indialawjournal.org/archives/volume2/issue_3/article_by_salman.html

[6] http://www.helplinelaw.com/immigration-appeal-and-others/GAMLSI/gambling-in-india.html

[7] https://www.rbi.org.in/CommonPerson/english/Scripts/FAQs.aspx?Id=420