Legal Status on Gambling and Betting

Context: The Law Commission of India has invited suggestions from the public and all stakeholders on the issue of betting and gambling in the country. It has put forward the questions that legalizing them are “morally correct in the Indian circumstances”.

What is the present legal status on gambling?

Public Gambling Act of 1867

Gambling is covered under the archaic Public Gambling Act of 1867, enacted way back in 19^th century.

State legislations

The Constitution has enabled the States to enact their own gambling legislation. However there are various issues with them:

a) Firstly, there is no uniformity in the various State laws.

b) Secondly, most of these laws only deal with physical gambling and not online or virtual gambling, which is seen to be a route to corruption and money laundering.

Section 67 of IT Act, 2000

· Section 67 of the Information Technology Act of 2000 only vaguely prohibits online transmission and publication of material which “corrupt” persons.

What are the arguments against legalizing gambling & betting?

Ruins families: Gambling is addictive and has ruined many families. Many families have become bankrupt and due to gambling, many people are in Jail.
Match-fixing: High stakes involved in betting has also led to match-fixing.
Online gambling: Online gambling and betting is another area which has become very difficult to curb.
Parallel economy: Since a lot of money is involved in illegal gambling business, this has created a parallel economy.

What are the arguments in favor of legalizing gambling & betting?

Gambling which is illegal at present, is widespread and “practiced across the country clandestinely”. According to Law Commission, the strict rules against betting and gambling are hardly a deterrent. Thus what can’t be cured should be endured.
Legalizing them will help in curbing illegal activities.
Licensing them will help the government to “earn substantial revenue and generate employment”. As per various estimates. a high-profile cricket match like India versus Pakistan attracts illegal betting to the tune of Rs 2,000 crore.
Supreme court’s approval of other forms of gambling:
a) In K.R. Lakshmanan vs State of Tamil Nadu case, the SC held that horse racing was a game of skill rather than chance.
b) In State of Andhra Pradesh vs K. Satyanarayana & Ors, the SC held that rummy is a game of skill and not entirely based on chance.
Five cricketing nations (namely U.K., Australia, New Zealand, South Africa and Sri Lanka) have allowed betting in sports to curb illegal activities and earn revenue.
In this background, Justice Lodha committee (which was formed in the background of 2013 IPL spot-fixing scandal) had recommended legalizing betting with a variety of safeguards.

Legal Status on Gambling and Betting

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