The current position of gambling in India may be described as quite ambiguous – primarily because of the gambling laws that are outdated and the diverse rules of the states. The legal provision of betting is governed to a certain degree by the Public Gambling Act of 1867, which is colonial legislation. This act outlaws the operation, visits, or possession of a gambling house. On the bright side, the same act does not single out online betting or sports wagering.
This article provides clarity on the side of gambling, answering the age old question, “Is sports betting legal in India?”
Fundamental Defining Factor of Legal Wagering
One of the basic factors that defines the legal state of betting in India is whether it’s a game of skill or a game of chance. Here’s the difference:
Game of Skill
In a game of skill, the player’s knowledge and skill level determine the outcome. Most games in this category require strategic thinking, which makes the player make a decision. It also takes constant practice to master a game of skill. For instance, games like chess require mastery and a degree of control.
Other examples of games of skill are:
- Chess
- Darts
- Horseshoes
- House of cards
- Kubb
- Marbles
- Tag
Game of Chance
Unlike a game of skill, a game of chance is one where the outcome is strongly influenced by a randomizing device like dice, roulette wheels, spinning tops, or reels and symbols in Lucky Star slots and other slot games. A game of chance can also have an element of skill.
Game of Skill and Chance Paradox
Sometimes, a game of skill can pass for a game chance. Examples of these games are:
- Poker
- Collectible card games
- Contract bridge
- Backgammon
- Mahjong
Legal Relevance of Games of Skill and Chance
To shed more light on the question, “Is online sports betting legal in India?”, you should know that in countries like India, games of chance are treated differently from games of skills. States regulate games of chance more. Although, most fantasy sports platforms operate under the premise of skill gaming. So, they face less stringent rules, unlike games of chance.
Penalties and Limitations Set by the Public Gambling Act of 1867
The Public Gambling Act of 1867 established an INR 200 fine or three months’ imprisonment for the running of gambling establishments. However, the disadvantage of this act is that it does not included other types of gambling such as web based wagering.
The Public Gambling Act of 1867 was sent too far in the past when there were no internet and social media connection. Thus, such laws’ interpretation is relatively inconstant and ambiguous, or different when implemented.
The Lodha Committee Report and Its Relevance
After the match-fixing scandal of IPL cricket matches, the country’s Supreme Court put forward a committee named Lodha Committee to look into the reforms in Cricket. As recommended by the committee, one ofthe recommendations passed was the legalization of wagering. The committee said that by legalization and then proper regulation, wagering can eradicate match fixing while on the same note, producing income for the government.
State-Specific Legislation
Every state has its own legal environment apart from the general federal laws in air and space law. Because of this, some states have made an effort to allow gambling of sorts in their region or country. Here are a few of these states:
Sikkim
Sikkim’s laws allow granting licenses to the operators of online sports wagering and other types of Internet gambling. That makes Sikkim one of the few states where online wagering is legal.
Goa and Daman
Goa and Daman have legalized various types of gambling under the Goa, Daman and Diu Public Gambling Act, of 1976. As they allow a certain extent of gambling, they did not include online wagering which make things unpredictable. So, for Goa and Daman, to a degree, sports betting is legal in India for players.
Maharashtra
Maharashtra has one of the strictest laws on gambling. The Bombay Prevention of Gambling Act of 1887 prohibits all forms of gambling. The government also appears to be very against wagering on games.
Insights from the Law Commission of India’s 2018 Recommendations
If you’re still unsure of an answer to the question, “Is betting on sports legal in India,” the Law Commission of India released a report on gambling in 2018. They titled this, “Legal Framework: Gambling and Sports Betting including Cricket in India.” The report highlighted the prevalence of illegal wagering in the country and the challenges faced in enforcing the prohibition of wagering activities.
The law also recommended a regulatory framework for wagering that suggested that legalizing betting could be a viable solution to issues posed by unregulated markets.
The key recommendations from the report were:
- The need to establish a strict regulatory framework for licensing betting operators for transparency and money laundry prevention.
- Measures to protect consumers from fraudulent practices and support for fair play
- Taxing betting activities for increased government revenue
- Developing techniques to prevent match-fixing and other forms of fraud in sports.
Conclusion
India has a clear legal grey area in the wagering landscape, which provides an opportunity for online betting websites to operate. However, not all gambling activities are allowed in every state. For instance, the IT Act doesn’t allow wagering in banned states. Players can easily stay abreast of all gambling regulations by studying what applies to their state.
