This article is written by Harshika Gaur from the School Of Law, HILSR, Jamia Hamdard.
Abstract
Betting or gambling has been existing since the Palaeolithic period, now that technology has advanced, betting has changed its form, the gambling that was done with the help of dice, card, etc, is now played online through mobile phones or laptops.
Online betting and gambling are not explicitly prohibited in Indian law, however entry 32, List II of the seventh schedule of the constitution grants each state the authority to enact its regulations. Several governments have also outlawed it, For instance, Telangana, Uttar Pradesh, Andhra Pradesh, and Tamil Nadu have banned online gambling apps in their territories, whereas, in Nagaland, skill-based games are allowed but not chance-based, it has separate legislation that deals with this, while gambling is permitted in Goa.
Gambling is permitted in countries like China because there are large taxes levied on such activities, and the money collected is used for social welfare and the development of the country.
Introduction
Gambling, which is also known as betting, is a popular term we all are familiar with, it consists of three elements, a wager, an event with an uncertain outcome, and a prize. The earliest evidence of gambling dates back to the stone age. One of the earliest gambling items was the astragali (small animal bones) which were marked and functioned just like dice. The earliest 6-sided dice date back to 3000 Bc in Mesopotamia and were based on these only. We can see the evidence of gambling in India as well, in Mahabharata we can see the Pandavas and Kauravas playing “Chaucer” (which was a gambling game at that time), the whole Mahabharata started because of gambling, which tells us that gambling had a lot of recognition at that period as well, but back then also it was considered immoral. Cards were introduced in the 9th century in China, before paper cards or plastic cards, the Chinese printed them on wooden blocks or leaves. This then gained popularity and it spread across different countries, then casinos were introduced and gambling areas were made. As time passed gambling was introduced in many forms and many laws have been passed regarding gambling. Now as technology is taking over, a new form of gambling can be seen as online betting apps. Online gaming is getting popular day by day because it is being promoted on huge platforms like YouTube and television by celebrities, apps like dream11, rummy, MPl, etc.
The Legality of Online Gambling Apps in India
In India gambling is legal in 3 states Goa, Daman, and Sikkim. Except for Nagaland, Sikkim, and Kerala, no state has clear laws regarding online gambling, so from time to time whenever a case reaches the court they have to decide whether it is a skill-based game or chance bases
In this case, it was held that when a certain level of skill is involved then it can not be considered gambling.
Telangana was the first state to ban online betting apps in 2017. States like Andhra Pradesh, Tamil Nadu, Uttar Pradesh, and Rajasthan have also banned online gambling apps in their territories.
In West Bengal, there are no laws made by them regarding online gambling apps. In Goa, it is legal to play them. As we have discussed above, it depends on the state whether they want to make laws regarding gambling apps or not, if they make laws, their rule will be followed and if not then there's only one Central Act which is the Public Gambling Act, 1867.
The common rules to play gambling games are-
Minors are not allowed to play such games
Only skill-based games are allowed not chance-based
Users are not supposed to change their squads post-deadline.
Members are not allowed gambling service
Difference between a game of skill and a game of chance
In a game of skill the player has a piece of prior knowledge about the game and success depends on the knowledge and experience of the player. Many online betting games are a combination of skill and chance but skill has to be a predominant factor. For example, as we have seen above betting on a horse in a horse race is legal because it depends on the skills of the horse.
Game of skill is not considered gambling and it is not prohibited in India.
On the other hand, the game of chance depends on the luck of the person. For instance, if a person bets that if you roll the dice and number 6 will come, this depends on luck as the probability of number 6 coming is equal to any other number.
Game of chance if banned in India
Laws Regulating Gambling
In 1867, legislation was passed under British rule regarding gambling which is known as Public Gambling Act 1857 is the only central act. In India gambling is said to be a state subject which means that each state is responsible to formulate laws for gambling which will apply to their respective areas only, so the States have the freedom to either follow the central act or to make their laws, this power can be seen in the entry 32 list II of the Seventh Schedule India constitution.
Nagaland has separate legislation that deals with the game of skills
Three things don't come under the ambit of gambling
Betting on a Horse Race
Horse race can't be considered gambling as it is not just "luck-based", the history of the horse, how many races a particular horse has won, his health, etc are kept in mind before betting, in a nutshell, the skills of the horse are seen so it is not completely based on luck.
Games of skills
Games that require skills are not considered gambling, this is excluded under the gambling act and by the court's judgment.
Lotteries
These are regulated by the lottery laws of India
Conclusion
Over the course of time gambling has changed its forms, from animal bones to online gambling apps, they have come a long way. Online gambling apps and websites are gaining popularity day by day, they are quite entertaining, easily accessible, and can be played while sitting anywhere comfortably, and rewards are given for that. Online gambling can be interesting but there are many disadvantages as well, people can get scammed while gambling online, and there are no proper laws regarding it, so it is hard to know what should be done. This is still actually a "Grey zone area" where there are no strict regulations.
They are addictive, some people get into these things so much that they don't do anything productive and end up losing a lot of money.
We can see that there are no specific laws and rules for such practice, each state is responsible for its law-making regarding gambling.
Countries like China have imposed high taxes on such activities so that more revenue can be generated, just like in India there's no ban on cigarettes though they are harmful just like gambling is, but instead of banning cigarettes, they impose High taxes on them, so that the revenue can be used in the development of the country. India can also follow similar practices for the development and greater good of the society, this can be considered a pro of the online gambling apps but this has not been implemented in India, there are many cons as well but in the end, the government decides what will be better for the country overall.
References
https://archeologiequebec.org/the-evolution-of-gambling-from-ancient-times-to-the-present.html
https://www.bestcasinosites.net/blog/gambling-ancient-world.php
https://www.mondaq.com/india/gaming/640102/nagaland-online-games-of-skill-act-2016
https://legalserviceindia.com/legal/article-8465-the-legality-of-online-gambling-apps-in-india.html
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