1. INTRODUCTION
Gambling has been a part of human culture for centuries, providing mix of entertainment, thrills and financial gains for some. India is a very big market for gamblers. It has been practiced in India for many decades, started as a form of entertainment but now people began to use it as the means of earning money. There are many forms of gambling but some of them are illegal in Indian states. There are some states where gambling is legalised by a government. Gambling has positive and its negative effects. On the brighter side, gambling provides employment, millions of people work in the lottery on the part time basis but on the negative side we can say that it is illegal as because of this crime rate is also increasing. Gambling generates illegal or black money, so it does nothing to improve the economy.
2. Meaning of gambling
If we discuss about gambling in very simple language then it is meant as winning a large sum or quantity of goods in a small sum of money in a one go, i.e. in a one round.
In a simple way, gambling is an act where money or some asses is kept at stake for a desired but uncertain outcome. Primary target is to win as much as you can but it is totally based on uncertainty.
But according to this principle there are three things mainly needed for gambling:
Consideration
Risk (Chance
Prize [1]
3. History of gambling
Gambling has a long history in India. Gambling has a long and established history in the country, appearing in several ancient texts. In ancient times, there was no distinction between what was game playing and what was gambling. Gambling can be traced back to the epic story of the Mahabharata. In which Yudhishthira and his kingdom lost his four brothers and wife in a dice game. This is an excellent example of irresponsible gambling. The effect of gambling in producing earnings is not new; during Kautilyas reign, gambling was regulated by the state, with a 5% tax levied on all winnings.Since that time, India has taken a welfare approach rather than a controlling one. Gambling taxes were the only source of income for some Indian kingdoms, so the Kings regulated and enforced these taxes on gambling houses in order to make a living. By the 15th century, legislations for following rules about fairness in gambling were also seen, not only from the nib of tax conduction. Indians developed a taste for horse racing. Initially, ram battles and cockfights were celebrated, but horse racing gradually became more civilized. Indians have been known to gamble without regard for the future, according to historical records Gambling has also advanced as new technologies emerge, particularly with the growth of the IT sector. Lottery tickets can be purchased via mobile phone, fax, or the internet. Networks connect gambling hosts, and money transfers are made simple through net banking. Television and radio have both used the stock market lottery. Satellite-based live telecasts have made gambling on cricket, hockey, and football possible. Many middle-class people enjoy watching television and enhancing their experience by placing bets over the phone or fax.
4. Types of gambling
There are mainly four types:
Matka :- A popular Indian lottery
Matka was popular form of gambling in India during 1960s and 1970s .it is basically a game of chance in which you bet on numbers the game was played by drawing numbers from the large earthen pot known as matka the game was mostly played in slums and working-class neighbourhood as a find at the means of socialising
Horse racing
Another form of gambling in India is horse racing it is legal in majority of States and there are several horse racing tracks throughout the country before the race people can bet on horses and the pay-out is based on the horse winning odds the turf authorities of India regulate the horse racing industry in India
Rummy
Rummy is a card game that has been played in India for generations. It is a game of skill that involves forming sets and sequences with the cards. Rummy is legal in most states, and there are several online platforms where people can play the game. The Supreme Court of India has recognized rummy as a game of skill and not chance; hence, it is not considered gambling.
Casino
Casinos are permitted in Goa and Sikkim. The state government regulates casinos in these two states. As a result, casino gambling is not as popular in India as it is in other countries, but it is gradually gaining popularity. There are several casinos in Goa that cater to tourists. Furthermore, Indians prefer to play
5. Laws related to gambling
Article 19(1)(g) of the Indian constitution provides Right to practice any profession or to carry on any occupation, trade or business to all citizens This liberty is naturally extended to all legal occupations, trades, and businesses. While betting and gambling and their taxation are State subjects, as enumerated in Entries 34 and 62 of List II (State List) of the Seventh Schedule to the Constitution, there are some important Central Legislations on the subject.[2]
Central Legislations
The Indian Contract Act,1872[3]
SECTION 23 The consideration or object of an agreement is lawful, unless- it is forbidden by law; or is of such nature that, if permitted, it would defeat the provision of any law; or is fraudulent; or involves or implies, injury to the person or property of another; the court regard it as immoral or opposed to the public policy.
SECTION 30 Agreement by way of wager or void; and no suit shall be brought for recovering anything alleged to be won on any Wager, or entrusted to any person to abide the result of any game or other uncertain event on which any wager is made.
The Public Gambling Act ,1867 An Act to provide for the punishment of public gambling and the keeping of common gaming houses.
Section 12 of this act says Act not to apply to certain games. Nothing in the foregoing provisions of this Act contained shall be held to apply to any game of mere skill wherever. This means Indian law distinguishes two broad categories of games: - games of skill as legal and game of chance as illegal.[4]
State enactments
Separate states have the authority to enact gambling and betting laws, according to clause 34 of the Seventh Schedule of Schedule II (List of States) of the Constitution of India, 1950.
- The Goa, Daman, and Diu Public Gambling Act, 1976 (1976 Act) adopted a punitive approach to public gambling and the operation of common gaming houses in the Union territory of Goa, Daman, and Diu. However, Goa has one of only two state laws. Casinos and other forms of gambling are permitted. By amending the 1976 Act in 19925 and 19966, the Goa Legislative Assembly added Section 13A, which allows the State Government to authorize games of electronic amusement/slot machines in Five Star Hotels and such table games and gaming on board in vessels offshore as may be notified.
2. The Sikkim Online Gaming (Regulation) Act, 2008, as amended by the Sikkim Online Gaming (Regulation) Rules, 2009, states that games such as Poker and Black Jack may be operated and played with a State Government license- The Sikkim State Government. The Sikkim Online Gaming (Regulation) Amendment Act, 2015, however, has limited the provision of online games and sports games to the physical premises of gaming parlours via intranet gaming terminals within the geographical boundaries of the State. The Government of Sikkim issued a notification in July 2016 prohibiting its residents from gambling in the states casinos
3.The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2015 (2015 Act). Section 2(3) of the 2015 Act, defines the term, Games of skill, to include all such games where there is preponderance of skill over chance, including where the skill relates to strategizing the manner of placing wagers or placing bets or where the skill lies in team selection or selection of virtual stocks based on analysis or where the Skill relates to the manner in which the moves are made, whether through deployment of Physical or mental skill and acumen
The Nagaland Prohibition of Gambling and Promotion and Regulation of Online Skill Games Act, 2015 (the 2015 Act), was passed in 2015. The term games of skill is defined in Section 2(3) of the 2015 Act to include all such games where there is a preponderance of skill over chance. Including where the skill relates to strategizing the manner of placing wagers or bets, or where the skill lies in team selection or virtual stock selection based on analysis, or where the skill relates to the manner in which the moves are made, whether through deployment of physical or mental skill and acumen
6. Case laws related to Gambling
- R.M.D. Chamarbaugwalla vs. Union of India
In the Civil Appeal No. 134 of 1956 heard along with the petitions, it was held that trade and commerce as protected by Article 19(1) (g) and Article 301 of the Constitution are only such activities that can be regarded as lawful trading activities, and gambling does not fall within the purview of trade, but is res extra commercium, and that it does not fall within the purview of those Articles.[5]
- The Supreme Court ruled in the 1996 case of Dr K R Lakshmanan v State of Tamil Nadu that horseracing betting is legal because it is a game of skillnot dependent on mere chance or accident but determined by many factors, such as the pedigree of the animal, the training given to it as well as the rider, its current form, the nature of the race, etc.[6]
- In State of Andhra Pradesh v. K Satyanarayana16 (1967, Supreme Court), the Court held that the game of Rummy is one which involves skill and stated that playing the game for stakes in clubs did not constitute an offence. It was held that Rummy was a game involving a preponderance of skill rather than chance. The court based its conclusion on the reasoning that Rummy requires a certain amount of skill as the fall of the cards needs to be memorized, and the building up of Rummy requires considerable skill in holding and discarding cards.[7]
7. Online Gambling
Online gambling involves engaging in gambling activities via the internet by placing bets or wagers on games and events with the aim to win money or prizes. It can be played on a variety of devices and uses virtual chips or digital currencies rather than cash.
There are some challenges of online Gambling: -
- Addiction: Because online gambling is so easy to access, it can lead to addiction, causing severe financial and social problems. Players can spend hours playing games without realizing how much time and money they are wasting.
- Money Laundering: Online gambling can be used to launder money because players can deposit large sums of money into online accounts and then withdraw the money in a legal manner.
- Social Isolation: Online gambling can cause social isolation because players can spend hours playing games online, resulting in a lack of social interaction with family and friends.
Advantages of online Gambling:-
- It can aid in the promotion of tourism in India by attracting foreign players interested in Indian-themed games or unique experiences not available in their home countries.
- Through deposit limits, self-exclusion programs, and problem gambling helplines, online gambling platforms can provide responsible gambling resources and tools to help players manage their gambling activities and prevent addiction.
8.Conclusion :-
To summarize, making rules for gambling all over the world is like finding the right balance between letting people do what they want and keeping them safe. Governments must figure out how to pass laws that keep people safe while also giving them choices. This is difficult because the way people gamble and the risks involved are constantly changing. Lawmakers must be aware of new technologies and how society is changing. The goal is to ensure that people can gamble without causing harm to themselves or others. Its like trying to walk a tightrope; they need precise rules. And, as gambling evolves, so should the rules, adapting to what is happening now and what may occur in the future.
Citation :-
1. Amit Kumar; "Gambling and it's related legislation" available at https://www.legalserviceindia.com/legal/article-3373-gambling-and-its-related-legislation.html#:~:text=In%20a%20simple%20way%2C%20gambling,is%20totally%20based%20on%20uncertainty ( last visited on November 22,2023)
2. The Constitution of India, art. 19(1)(g).
3. The Indian Contract Act,1872( Act 9 of 1872),ss.23,30.
4. The Public Gambling Act,1867(Act 3 of 1867), s.12.
5. AIR 1957 SCR 930
6. AIR 1996 1153 SCC (2)226
7. AIR 1968 SC 825
