Is sports betting legal in India?
Sports betting is a gray area in India. The Hon’ble judgment of the Supreme Court of India in a horse racing appeal held that betting on horse racing is a game of skill as it involves judging the breed and form of the horse, the form of the jockey and the conditions among others. . However, there is no such ruling that directly deals with betting in other sports.
Under whose jurisdiction are the sports betting laws made in India?
The Constitution of India (Seventh Schedule, State List, Entry 34) gives states the right to make their own laws and policies regarding betting and gambling. The primary responsibility for the regulation of betting and gambling in physical premises therefore rests with the state. Most states have enacted laws prohibiting gambling, but two states, Goa and Sikkim; legalized many forms of betting and gambling. But when it comes to online betting, the scope of this entry 34 becomes unclear as IT legislation is vested in the Central Government.
Pre-independence there was no such distinction and public gambling, 1867 controlled betting and gambling in the country. After independence some states have adopted this law and hence this law is still valid for those states. In view of this situation, the central government could also look into amending this Public Gambling Act and draft model rules that the state government could adopt.
What laws apply to betting in India?
- On 1 August 2009, the State of Sikkim amended the Sikkim Online Gaming (Regulation) Rules, 2009. This amendment made online sports betting legal in the State of Sikkim, provided the operator holds a licence.
- Some other state laws are: West Bengal Gambling and Prize Competitions Act, 1957, Bombay Prevention of Gambling Act, 1887, Madhya Bharat Gambling Act, 1949, Punjab Public Gambling Act, 1961, UP Public Gambling Act, 1867, Kerala Gambling Act, 1960, Karnataka Gambling Law / Act, Goa, Daman and Diu Public Gambling Act, 1976, Sikkim Online Gaming (Regulation) Act, 2008, Madras City Police Act, 1888 to name a few.
Should betting and gambling be regulated in India?
Despite constant attempts to enforce a ban on sports betting and a number of arrests, large amounts of money are still bet on sports in India. Some estimates put the total turnover of the betting market at Rs. 300,000 million crowns (60 billion dollars). Because of the perceived illegality of sports betting, large sums of money flow untaxed to unlicensed offshore websites or illegal bookmakers, many of which are allied with organized crime. This represents a strong case for its regulation, as sports betting is seen by a large number of people as an unavoidable activity and merely a form of entertainment.
What problems arise from the criminalization of unregulated sports betting?
The problems that arise are:
- Lack of information about the gambling industry, especially since most of it is on the black market.
- There is no information on whether bookmakers are gambling with minors or those with gambling addiction problems – and therefore there is nothing we can do to curb this threat to society.
- There is no information as to whether or not a bettor betting with a bookmaker is getting a fair offer.
- There is no accountability for money flows through black market gambling.
- There is no way to monitor the pattern of bets placed on a sporting event – one of the key ways match-fixing can be detected and prevented.
- There is a loss of exchequer that can derive tax revenue from the industry. It is estimated that the owner can earn Rs. 12000 Rs. 20,000 crores as taxes.
In short, the absence of an independent regulator encourages criminal activities, is a threat to society and leads to sports fraud such as match-fixing. Betting regulation provides a framework to address all of these issues.
How can gambling regulation help in the fight against match-fixing?
Legalizing and regulating sports betting may not completely solve the fixing problem, it just makes it easier to monitor, investigate and detect anomalies because betting patterns can be tracked. At the same time, it also limits the amount of money and opportunities available to fixers to tilt the odds in their favor, making fixing less lucrative. The focus of the police or regulatory authority will also shift from preventive action to regulatory action. It will be more of a business transaction monitoring like SEBI has stock market monitoring.
Under regulated betting, bookmakers will be required to keep proper records of the transactions they involve and know the identity of those they bet with, which is key to ensuring sports fraud is detected and tackled. Cash exchanges between bookies will be easier to track and when there is more fear of being caught, this generally translates into less illegal activity such as fixing. In fact, the licensees themselves will ensure and create systems where sports fraud would be very difficult as their licenses can be revoked or goodwill affected if they are caught breaking the rules. This process is possible only after betting is legalized and regulated.
