Introduction to Gambling:
Gambling is betting or wagering money or anything at the expense of a possible future outcome to win. Gambling in India traces back to the time of The Mahabharata, almost 4000 years ago; it is described as a form of playing dice or “Chaucer”, as it was called back then. It might be possible that gambling was introduced for people to increase their knowledge, basically to increase their capacity to take risks in their lives. Eventually, gambling became a game played by everyone from rich to poor, usually by royals in their leisure time. A famous instance of gambling, which everyone knows about, is when, in the Indian legend Mahabharata, the Pandavas wagered everything they had, including their wife, while playing dice.
Since then, gambling and betting have evolved with time. People bet with money. Some people even win crores, set up a business, and live peacefully. More people have started betting illegally with money, leading to corruption and money laundering. The Public Gambling Act of 1867 prohibits people from running or being in a public gambling house. Punishment for it varies- up to Rs.200 fine and imprisonment of up to 3 months. Different states in India have laws regarding gambling. For example, Goa, a famous spot for tourists, both Indian and Foreign, has licensed casinos. According to the census 2019, casinos contributed a total of 411cr in the overall revenue of Goa. If it brings revenue to the state on a large level, although it is completely immoral, then why not make it legal?
Also, only three types of gambling are legalised in India- horse racing, rummy, and lottery. Rummy is one of the most common types of betting we’ve seen around. It is played with cards, originally from Spain. It is one of the most common types in casinos as well and is played all around the world. It is also one of the most common ways of illegal gambling.
Gambling in earlier days was more indiscreet than it has become in today’s generation. People used to gamble freely without any fear from anyone. It was a way people used to spend their quality time. But nowadays, people need to fear the law, although many gambling houses are running underground, which is not under the watchful eye of the law. Las Vegas, which people notoriously call “Sin City”, was coined because of the popularity of legalised gambling. People used to travel from countries to play poker or blackjack. But now the situation has changed. People don’t have to travel to great lengths to test their luck in a game. They can do it right where they are right now through their smartphones, thanks to the invention of technology.
There are numerous reasons why people prefer online games more than being together in a place to play. The reason being – a) Travelling expenses are spared. A player does not have to set aside a few hours every week and money to go to a casino. All of it could be done in the comfort of his home. b) Online casino games offer many bonuses not seen in a land casino. c) Accessibility. Not all casinos are available near everyone’s place. People have to travel a great distance, and also, they’re not available 24/7. Online games, although they have no time deadline, are always available. Other factors why people prefer online gambling could be it allows players to play globally with people joining in from different corners of the world; also, the payment methods are much sorted, which are not usually found in land casinos, ranging from credit cards to cryptocurrencies.
Gambling in Accordance with Law in India:
Gambling in legal or professional terms can be termed as a Wagering Contract, in which two people enter into a contract wherein the first party pays another party on completion of an event and the second party pays the first party on not happening of an event. Examples related to wagering contracts may include horse racing; section 30 of the Indian Contract Act provides the winning or losing of a horse with a valid agreement.
During the British era, in the year 1848, came the Wagers Avoiding Act. This act provided that any action of the wager may be maintained if it was not against the third person's feelings and otherwise wouldn’t be valid. They used to consider this immoral and illegal, although gambling, as said before, was a part of our heritage from the olden ages.
The case of Chimanlal Purshottamdas Shah vs. Nymatrai Madhavlal (1985) gave a new perspective to wagering-” the way to gambling and wagering is that one party must win. The other will lose, at the future course of an event, if it turns out one party’s way he will win and otherwise he would lose”.
Wager Essentials:
Firstly, a wager depends on the happening of an uncertain event. Betting is all done on the uncertainty of events to either win or lose. In the case of Jethmal Madanlal Jokotia v. Nevatia & co (1962), it was held that although a wager is mostly done on future events, it may also include past incidents, in which the parties were not attentive at the time of the happening of its result.
Secondly, there must be a win-or-lose situation for either of the parties; after all, a wager is done to win something. In the case of Narayana Ayyangar v. Vallachami Ambalam (1927), it was held that a discount fund cannot be termed as a ‘wager’ because although some may achieve it, none of them have the opportunity to lose.
Thirdly, neither of the parties has any control over the event. If a cricket match takes place and A and B wager a bet of Rs.50,000, if A fixes the match by bribing the empire, then the wagering agreement would be considered void as he pre-fixed his winning. Here, A has control over the event, making the agreement void.
Lastly, both parties must only be interested in winning or losing in the wager, not in any other thing in the uncertain event.
Types of Wagers under the Indian Contract Act:
Spread betting. Usually, this type of betting is seen in films, which includes betting on a favoured team that usually wins or even loses with a very small margin.
Money line betting, i.e., betting through money, is the most common and easiest way to bet. It is mostly done in sports. The most famous example of moneyline betting can be seen during The Indian Premiere League (IPL). People all over India bet on cricket teams as well as on players. A common yet known platform for betting during the IPL season would be Dream 11. People form virtual teams with real-life players and earn points based on the performance of these players in the real match. It becomes a source of income for many individuals. People find it a way to kill time. It is mostly played by young people aged 18-35 because they are looking for a way to earn extra income.
Dream 11, IPL Betting; Legal?
Now the question comes- why is Dream 11 considered legal in India? This also involves betting through money and can be regarded as illegal, but it isn’t. Dream 11 is a game of skill, meaning players use their skills and talent to determine who will win the match or which player will win. Numerous sites already help in determining the winner. The skill required would consist of how much attention the participants pay in anticipating how the players will play. Paying money on the app is also considered because most of the money is deducted to pay taxes to the government. According to The Public Gambling Act of 1867, gambling is not considered for games that require a skill. Similarly, the game of “rummy” is also considered a game of chance and skill; unlike other card games such as flush, brag, etc, these are all considered fantasy sports; players do not put at stake the happening or non-happening of an event instead using skills to win.
Other apps like Fanmojo, League, and Fantasy Power 11 are other apps that provide betting on sports, mainly cricket. These are also legal, as they require skills.
Another thing that raises a big yet controversial question is - whether online gambling or betting is legal in India. India has many states which have governing laws of their own. Each state has different laws regarding gambling. Some consider it to be illegal, while some don’t. Only the Public Gambling Act of 1867 governs the whole country. States like Goa, Sikkim, and union territories Daman and Diu have allowed gambling to be legal. Other states still follow the principle of allowing games of skill to be legal. Since we are talking of games involving skill and not chance, another question that pops up is- How is horse racing considered a game of skill and cricket a game of chance? Horse betting is legal in India, but whenever a matter of betting in cricket comes up, it is deemed illegal. The reason is – a) According to a census done, horse betting leads to horse breeding in the country, which is a profitable business, so if it is prohibited, it will lead to a decline in revenue. b) Also, many people find horse racing uninteresting, but since people find betting fun, it isn’t illegal.
There are many ways in which the gambling industry is earning a lot. Even the government is earning through it. More states are working on the idea of making online gambling legal in India. If banned, how would the economy face this huge loss, and wouldn’t it be affected badly? If it is not banned, people will continue to gamble and bet illegally under the eyes of the law. So, it is a contradictory issue whether or not it should be made legal or not.
Disclaimer: Kindly note that the views and opinions expressed are of the author(s), not Law Colloquy.
References:
https://blog.ipleaders.in/wagering-agreement-and-its-essentials/
https://indiankanoon.org/doc/1824663/
