A bet can be placed in minutes. Anyone with a credit card can setup an offshore currency account with a gambling site, leaving them absolve to place bets on sporting events like Wimbledon, cricket, horse racing and Formula One, or join a virtual casino to play slot machines, roulette, blackjack, poker etc. Companies like Flutter and Betmart accept bets on anything from who’s going to win the Nobel Prize to whether Madonna is getting a divorce or not. Bets can range from a nickel to thousands of dollars and according to whether you win or lose the total amount is automatically adjusted back. The final balance may then either be mailed to you or left for future bets.
The law relating to online gambling in India should be understood within the country’s socio-cultural context. At the outset, gambling, but not absolutely prohibited in India, will not receive express encouragement by policy makers. The Indian organized gambling industry is estimated to be worth around US$8 billion. While stringent laws have checked the proliferation of casinos and traditional gaming centres as in many other countries, barring the state of Goa, the lottery business remains probably the most post popular form of gambling.
Though gambling isn’t illegal, this is a highly controlled and regulated activity. Modern India is a quasi-federal Constitutional democracy and the powers to legislate are distributed at the federal in addition to the state levels. Gambling features in List II of the Constitution of India, therefore that hawaii governments have the authority to enact laws so that you can regulate gambling in the respective states. Thus, there is no single law governing gambling in the entire country. Different states have different laws governing gambling in addition to the laws that have an application across the country. While some states have banned lotteries, other states allow state lotteries marketed and distributed in other lottery playing and promoting states through private entities.
Regulation of gambling
The courts have defined gambling as ‘the payment of a price for a chance to win a prize’. The dominant component of skill or chance shall determine the type of the game. A casino game may be deemed to be gambling if the component of chance or luck predominates in deciding its outcome. As a result, Indian courts have held that betting on horse racing and some card games are not gambling. The right to undertake the business of gambling and lotteries isn’t considered as a simple right protected by the Constitution of India. bucin4d could however be pointed out that the state government run lotteries make significant contributions to the state exchequer of several state governments and the Union government, and hence there is a resistance to complete prohibition.
The following legislation is pertinent to gambling:
THE GENERAL PUBLIC Gaming Act, 1867
This Act provides punishment for public gambling and for keeping of a ‘common gaming house’. This Act also authorises hawaii governments to enact laws to regulate public gambling within their respective jurisdictions. The penal legislations in respective states have been amended in accordance with their policy on gambling. However, this legislation doesn’t have any direct impact on online gambling unless a broad interpretation is given to this is of common gaming house in order to include virtual forums aswell.
The Indian Contract Act, 1872 (ICA)
The ICA is a codified umbrella legislation that governs all commercial contracts in India. Beneath the ICA, a wagering contract may be the one which can’t be enforced. The Act lays down; ‘Agreements through wager are void, no suit shall be brought for recovering anything purported to be won on any wager or entrusted to any person to abide by the consequence of any game or other uncertain event which any wager is made’. Gambling, lottery and prize games have held to be wagering contracts and therefore void and unenforceable. While a wagering contract isn’t illegal, it cannot be enforced in a court of law. Thus, the courts will not entertain any reason behind action that arises out of a wagering contract.
Lotteries (Regulation) Act, 1998
This Act provides a framework for organizing lotteries in the united kingdom. Under this Act, hawaii governments have been authorized to promote together with prohibit lotteries within their territorial jurisdiction. This Act also provides for the manner where the lotteries should be conducted and prescribes punishment in case of breach of its provision. Lotteries not authorized by the state have been made an offence under the Indian Penal Code. Several non-lottery playing states, like Gujarat and Uttar Pradesh, have prohibited the sale of other state-government lotteries under this Act.
Indian Penal Code, 1860
Section 294A deals with keeping lottery office. It says that whoever keeps any office or place for the purpose of drawing any lottery not being a State lottery or perhaps a lottery authorised by the State Government, will be punished with imprisonment of either description for a term which might extend to six months, or with fine, or with both.
And whoever publishes any proposal to cover any sum, or even to deliver any goods, or even to do or forbear doing anything for the advantage of any person, on any event or contingency relative or applicable to the drawing of any ticket, lot, number or figure in virtually any such lottery, will be punished with fine which might extend to one thousand rupees.
The law related to gambling can be applicable to online gambling. All gambling contracts are believed to be wagering contracts in fact it is not possible to enforce such contracts beneath the ICA, detailed above.