Gambling In India

 

Introduction:

Gambling has been a source of Entertainment for the people since ages. It can be traced back to the Indian epics and Methodology such as the Mahabharata and the Narada Smriti which suggests that Gambling is a sport that should not be criminalised. And its craze can also be seen in the hymn of Rig Veda and Atharva Veda. Gambling is becoming more advanced with the emerging of technologies and the bets are placed by mobile phones, fax and the Internet.

 Gambling has both negative and Positive Prospective. Socialists consider Gambling as evil for Society whereas, some Economists see it as a Market Commodity and beneficial for the state revenue. What is the legislation for Gambling in India? And what will be its impact on the revenue of the state after legalizing it? These questions will be answered in this Article. 

Keywords: Gambling, lottery, legalisation, Dimension.

Types of Gambling 

1. Underground gambling:

This form of lottery is very common among Indians both in urban and rural areas. In an underground lottery, people buy a lottery ticket on which certain numbers are written. If these numbers matched with the numbers of result then he is declared as the winner of the lottery. It is regulated by the government under Lotteries (Regulation) Act of 1998.

 2. Horse Racing:

Horse racing is not illegal in India. The Supreme Court Explained the status of Horse racing in the case of Dr K.R. Lakshmanan vs. State of Tamil Nadu that the bet on horse racing completely based on skill and not based chance therefore it does not come in the ambit of gambling. The court also held that the factors like adequate training received by the horse and skill of his rider, pedigree given to the horse, nature of the race etc. play an important role in the horse racing.

 3. Sports gambling:                                                                                                                              This form of gambling has become very widespread in India. Mostly it can be seen in the Sports league such as IPL. The advent of new technology makes easier online sports betting. Though it is being illegal in India. It leads to match-fixing which is also illegal and players who are found to indulge in it are banned from playing the sport for their whole life.

4. Casino gambling:                                          

public Gambling act, 1867 defines a casino as a public room or building in which gambling game is played. This act prohibits these public gaming houses or Casinos and the penalty for it is a fine of Rs. 200 or Imprisonment of up to 3 months. Though this law empowers the states to make specific laws for casinos.

At present, there are two States and one union territory which legalise gambling. Goa, Sikkim and Daman and Diu. Goa was the first state which legalised casino games. 

Legal Framework of Gambling:

In India Gambling is considered as the state subject under List II of the Seventh Schedule of the Indian Constitution. the Public Gambling Act, 1867 is a central law that clearly prohibits all forms of Gambling betting except where skill is required. Though the act is old and was drafted by the Britishers, the Irony is that in Britain gambling has been legalised but we are stuck with their old laws.

 Dr B R Ambedkar said that entry 45 under List II should be mentioned in the constitution which may be used either for the purpose of permitting Gambling or Prohibiting by the state according to their Socio-Economic Conditions.

Judicial Trend:

In the case of the State of Andhra Pradesh v. K. Satyanarayana the Supreme Court legalised rummy game and interpreted ‘Game of Skill and Game of chance’. Held that playing rummy requires skill and does not entirely depend on chance.

In the case of Shri Varun gumber vs. UT of Chandigarh & others 2017 the Punjab and Haryana high court ruled that fantasy sports like Dream 11 are skill-based and could not amount to gambling. 

In K.R. Lakshmanan v State of Tamil Nadu The Supreme Court was on the opinion that the competitions in which the success depends upon the Substantial degree of skill are not gambling though there may be some elements of chance.

 Socio-Economic Dimension:

Gambling generally creates a disturbance in Society by its Consequences. It leads to crimes. Gambling pushes a person into financial loss which creates Disturbance due to which the persons aspire to commit a crime with a view to repaying their financial loss. Generally in Gambling black money is used which increases the risk of corruption. The gambling market discourages honest businessmen by generating unfair Competition.

There are many positive aspects of Gambling from an Economic point of view. On the one hand, it generates employment for the poor in casinos and lottery centres. In another, it generates revenue for the state.                                              

According to the RBI report, 'State Finances -A study of Budget 2018-19, the revenue generates from casinos and lotteries increase the states’ Profit. This revenue is used by the state for public welfare, such as the education sector, health sector and Agricultural sector.

 Conclusion:

By now, it can be said that gambling is legalised in few states and prohibited in more of the states. Though, it is being illegally practised which affects the lives of the individuals. They are being an addict to betting in the quest of becoming rich and creating hardship for honest businessmen. Therefore, it is suggested that either it should be legalised so that the state can control all the gambling activities or it should be prohibited strictly and related laws must be implemented.