The topic which is going to be discussed here in this project carries a
certain and specified history in itself. Since the Vedic period or before, its
influence has been seen time to time in different texts written at that time
such as: Rig-Veda, Atharvaveda, in the context of Mahabharata, etc.
From the game of betting in cricket and such other games to Chausar and modern
days Casinos, everything comes under the influence of gambling.
Laws to prohibit gambling has been seen in texts like Manusmriti, and even in
Arthashashtra but all these laws have seemed to be failed always.
To understand this partially entertaining but completely destructing game, we
have to understand it one by one in a chronological order from the ancient time
to modern era.
It is termed as destructive because it involves a lot of risk and uncertainty,
and the main thing is that people who entertain themselves by playing gambling
always consider it as a skill which they already mastered and thus they have no
idea of risk they are being going through.
Meaning of Gambling:
If we discuss about gambling in very simple language then it is meant as winning
a large sum or quantity of goods in a small sum of money in a one go, i.e. in a
In a simple way, gambling is an act where money or some asses is kept at stake
for a desired but uncertain outcome. Primary target is to win as much as you can
but it is totally based on uncertainty.
But according to this principle there are three things mainly needed for
- Risk (Chance).
It means that assets kept at stake must be of equal worth. I.e. in simple
language, in exchange of one thing, provided the other must be of equal worth.
There is a principle in business, 'more risk more profit'.
This principle is equally applied in gambling also. It means that more amount
you put at stake, more are the chances of game. It all is a game of
When consideration and risk get completed then comes the third
stage i.e. PRIZE. As we have told earlier, prize always depend on risk. And the
main and complete goal of any gambler is to receive a good prize.
Gambling in ancient India:
In the history of India, as discussed earlier gambling has been seen in
practice, and it adversely affected the society at that time also. In a
reference from Mahabharata, Yudhishthira, the eldest Pandav has been shown to
lose everything related to him, even his brothers and his wife also in a game of
There are such other instances also seen in ancient India where such references
to gambling has been seen and certain rules and laws have been made to regulate
it but all seems to failed at this point. In the works of 'Yagnavalkya
' and 'Kautilya'
, they have advocated to frame laws
to regulate gambling.
Even in the Vedas like Rig-Veda and Atharva-Veda which were written around
1500b.c. have proofs of such instances of gambling.
In Katyayani Smriti, verse 935-939, it is written that if gambling can't be
stopped, it should be thrown open to all the citizens of that country, under the
And taxes should also be imposed on the Gamblers as it is important part to
regulate the Gambling.
Thus, according to them it can be played but only by paying proper taxes to the
Manu said that:
These type of activities such as Gambling, Betting, etc. are harmful for the
society as they are immoral, unethical and these acts betray the moral values of
people and thus lead to the degradation of moral value and thus resulting in the
downfall of social and ethical values in the society.
In Narada Smriti, gambling is considered as an entertaining act which should be
practiced in public games so as to entertain public.
From the above context, it can be concluded that scholars in ancient India kept
a miscellaneous or mixed approach towards the act of gambling and it always
remained a matter of discussion, whether it an act of skill or it is just a
Along with time forms of gambling and betting have been changed and evolved with
the use of technology and everyone's access to internet. Now-a-days people put
betting through mobile phones etc. and thus making it more difficult to be
Difference between wagering, betting and gambling
It includes different acts of probability which may be possibly happen or
may not happen. In these type of acts there is an operator which individually or
with a small team run a game, it may be based on anything like numbers, words or
figures etc. where players put their money at stake in hope of possible outcome
to multiply that amount. It also includes the game of cards in which players put
something worthy to risk of wining.
It includes events like possibility of happening of some incident and all these
type of events are definitely and completely illegal in India.
Gambling on the other hand is different and can be understood by the FINANCE ACT
1994 'BETTING AND GAMBLING' under section 65-B (15), according to which it is
stated that 'Gambling is an act in which an individual put on stake something
valuable, specially money with the knowledge of Risk of losing it and Hope of
gain by the result of a game or an event whose outcome may be decided by
probability or luck or on the possibility of something happening or not
Generally betting is also considered to be similar as wagering but it is
particular to certain events such as Horse racing or matches between individuals
or Teams. Thus we can say that betting is a part of wagering which is done in a
sporting event on its resulting day.
Betting can be simply considered as putting something valuable or liquid cash at
stake on any events to happen or not happen.
Betting and Indian Constitution
On 2 September 1949 in the debate of constituent assembly Entry 45 (present 34)
has been added which include a ways to deal with betting and gambling. It is
listed in PART 2 of the seventh schedule.
Members of constituent assembly were thinking to completely ban the Betting and
Gambling while Dr. Ambedkar put forth his views which were totally different. He
said that if Entry 45 of betting and gambling is being removed then there will
be nothing in control of state governments to regulate it but it doesn't mean
that we should permit Betting and Gambling. He said that Entry 45 is just a tool
for state government to either permit or prohibit betting and gambling. After so
many arguments and verdicts Betting and Gambling was included in the state list
so that state governments can regulate it.
In a general pretext it can be considered that in India Lottery and Horse racing
are two events which are legal under Betting.
According to Entry 40 List 1 parliament has the right to make law over any
Lottery organized by any of state governments or by the government of India.
According to List 2 of seventh schedule in Entry 34 state governments have right
to make law on gambling.
Constitution also focused on the thing that state should keep children and
youths away from the exploitation (moral and material) by Gambling.
Morality and Betting
On the basis of morality Indian society always rejected such type of activities
every responsible citizen of the country should prevent its relative from fallen
for this type of activities.
Government also prohibit such type of activities for the social as well as
national development. But instead of such type of prevention and prohibition
there are such type of falls activities which have been prevailed in the society
at a big level.
In the popular case of Guru Prasad Biswas versus state of west Bengal and
others. The honorable High Court of Calcutta stated that activities like Betting
and Gambling adversely affect an individual's moral values and due to which
his/her right to live guaranteed under Article 21 of the the constitution of
India is being infringed.
Public Gambling Amendment Bill 2002 was heavily protected by society as it was
advocating to legalize Gambling and Betting.
Legal perspective of gambling and betting
There are chances of being people resorted to the unlawful acts in a bid to earn
a quick money so in order to prevent this governments continuously work upon
laws and legislatives on these acts of Gambling and Betting.
Those who are in the favor of regulating these acts , they found them unethical
and immoral which directly harms the public ethics as well as society as they
are directly related against the morality.
They think that if Betting and Gambling is legalized, it will create a platform
from which any individual can take part in the unethical, corrupt and anti –
social activities practiced against the society and nation without any
In 2014, Rangarajan committee predicted that approx 30.9% population in rural
areas and approx 26.4% in urban areas fall below the poverty line, and it is
quite shameful and a big problem that approx one-third of the population falls
under the poverty line and involved in the shameful and immoral act of gambling.
Here let us talk a little about doctrine of res extra commercial, this doctrine
seeks to exclude certain activities from the ambit of freedom of trade and
profession guaranteed under Articles 19(1) (g) and 301 of the Constitution of
India. It means that these activities of gambling and betting are not considered
as act of trade and commerce as in certain events The Court also remarked that
though these activities employ external forms, formalities and instruments of
trade, they could not be considered commerce. It is pertinent to note that this
distinction between activities that were protected under Article 19(1) (g) of
the Constitution and those that were not, was made on the basis of whether the
said activity involved substantial element of skill or chance. While the former
have been given the protection from Constitution, the latter have termed as
illegal from that very same Constitution.
Immorality or opposed to Public policy
According to Section 23 of the Indian Contract Act, 1872 the consideration or
object of an agreement would be lawful unless regarded as immoral, or opposed to
public policy, by the Court. Here arise the question that what is the public
policy? It is answered in the context that Public Policy is a common or a
general policy that advocates the public interests and whenever any action
affects public interests, the Public Policy is invoked.
Here it can be considered that Public Policy is not permanent and it varies from
time to time and it does not remain static at all.
Therefore, it can be said that even if gambling and betting are questionable on
the moral grounds, the framers of the constitution were aware of the fact that
it would be nearly impossible to completely prohibit such type of activities.
And now-a-days with the more access of technology this problem has become worse.
Thus the idea of putting betting and gambling under the state list was a very
technical decision as it empowers the state to put regulations on these
activities as per the socio economies conditions of that particular state.
Wagering AgreementIn the case of Carlill v. Carbolic Smoke Ball Co.90, a wagering agreement was
one by which two persons, professing to hold opposite views touching the issue
of a future uncertain event, mutually agree that, dependent upon the
determination of that event, one shall win from the other, and that other shall
pay or hand over to him, a sum of money or different stake; neither of the
catching parties having the other interest in this contract than the total of
stake he can therefore win or lose, there being no different real consideration
for the making of such a contract by either of the parties.
Wagering is completely banned in India and according to law a wager is
completely null & unenforceable by law. It is considered as immoral and against
The main reason for the provisions of declaring wager as void is to detach
people from such activities of making a quick money and to indulge them in a
productive work which would help in the development of their family as well as
that of nation.
Wager is also non recoverable as per the Indian Constitution. All the contracts
of wager whether they are expressed or impressed are automatically considered as
null & void.
It is also given in the Section 30 of Indian Contract Act that any legal cession
or online gaming operators could refuse the winner to pay the winning amount as
it is unenforceable according to the constitution. Therefore all these
provisions are mainly oriented towards the public detachment from such type of
According to the Constitution of India in the Seventh schedule List 2, Entries
34 and 62: Gambling and Betting are the state subjects but central legislations
also affect them.
Some examples of these affects are:
- Indian Contract Act 1872 (IPC).
- The Foreign Exchange Management Act 1999.
- The Prevention of Money Laundering Act 2002 (PMLA).
The Lotteries Regulating Act, 1998
- 'Lotteries' are placed in the Entry 40 of List 1 of the seventh schedule
of the Indian Constitution.
- Lottery is considered as legal in India. According to Act of 1998 Lottery
should be organized by the state government and the place of Draw should be
in that particular state.
- According to Section 5 a particular state can organize the Lottery within
its state boundaries and the sale of tickets cannot be done in the other
- According to Section 4 revenue collected from the sale of Lottery
tickets should be deposited in the state treasury.
Indian Penal Code, 1860Sub-section (1) of section 292 of the Indian Penal Code
Provides for a matter to be obscene if:
It is lascivious or appeals to the prurient interest or if its result, or (where
it includes 2 or a lot of distinct things) the result of anybody of its items,
is, if taken as a full, like to tend to alter and corrupt persons, UN agency
square measure probably, having relation to all relevant, to read, see or hear
the matter contained or embodied in it.
Sub-section (2) supplements Sub-section (1) of Section 292 by laying down a list
of instances as also the penalties of offences covered under this provision.
Section 294 strikes at punishing anyone who to the annoyance of others does any
obscene act in a public place or sings, recites or utters any obscene song,
ballad or words, in or near any public place. These provisions of the IPC may
be attracted if any obscene matter is used for the purpose of advertising
Betting and Gambling activities.
Indian Contract Act, 1872According to Section 23 of Contract Act,
'consideration must be lawful otherwise
it will be prevented by the law if its nature is defeating any provision of the
Section 30 declares all types of wager as 'void & unenforceable' and it is
considered as illegal. While there is an exception to this provision as in
the contract act betting on Horse racing is permitted.
Prize Competitions Act, 1955Section 2(d) of the Act defines the term Prize Competition as:
any competition (whether called a cross- word prize competition, a missing- word
prize competition, an image prize competition or by any other name) in which
prizes are offered for answer to any puzzle based upon the ranking pattern,
arrangement, combination or permutation, of letters, words, or figures.
According to P.C Jain committee 2014 most of the states have their own state
legislations to deal with Betting and Gambling.
Foreign Exchange Management Act, 1999Remittance of the Income generated from Lottery winning, racing/riding is
prohibited under this act.
According to Clause 1 of this act any type of collaboration with foreign
technology for the purpose of Betting and Gambling is prohibited under this
Payment and Settlement system Act, 2007 Under this act RBI has the sole authority to regulate all types of
Electronic payments. If RBI works to constitute a Legal framework and
authority for gambling procedures then in that condition Gambling procedure
can be stopped.
Information Technology Rules, 2011According to the Rule 32(b) under this act any internet service provider,
network service provider or any search engines will not host any such content
which directly or indirectly support Gambling.
According to Rule 3(4) any type of content which support Gambling should be
deleted within 36 hours.
Income Tax Act, 1961Under this act current taxation policy in India covers all type of Gambling
industry directly and indirectly. Thus, it can be said that all regulated and
legalized Gambling is supporting in GDP of India.
Public Gambling Act, 1867This act is taken from British Gaining Act 1845 and Betting Act 1853.
The main goal 1867 Act was to punish public Gambling and to keep common gaming
Public Gaming Act has been ceased to the central legislation such that it cannot
be applicable in the whole country unless the state adopted it on its free will
because the law making power on these activities directly confers to the state
by the constitution of India.
Currently there are 14 states/UTs were the public gambling act is implemented.
Parliament can exercise the power of law making on Betting and Gambling under
the article 249 to 250 if necessary.
International Views of Gambling
On the international level different countries have different views on
regulating and controlling the gambling and betting.
The countries which primarily preferred to religious views have completely
banned Gambling while on the other hand some countries have partially banned and
so as to generate revenue for Gambling. This helps in the growth of the GDP of
the country. Thus it can be said that different countries have different
- United Kingdom:
United Kingdom Gambling Act, 2005 in its Section 3
'Betting' and 'Lottery'. This act regulates Gambling and Betting in the country
and its main target is to protect children and other vulnerable people from
being exploited or harm by the Gambling.
- United State Of America:
the laws related to regulation of Gambling and
America are quite liberal and it is regulated in three sets in America:
According to American Gambling Association commercial casinos directly paid
$8.95 billion direct tax at state level. In 2016 $38.96 billion revenue has been
generated from the commercial casinos in America.
In Australia (Federal and State Government) keep an eye of every aspect of
Federal Government of Australia makes laws on internet gambling while State
Government watches every aspect of gambling and Local Government plans on the
regulation of Gambling.
Sport Racing, Horse racing and Grey hounded racing is legalized for licensed
authorities or operators.
Austrian laws are applicable on all types of Gaming and betting activities.
E-commerce Act of Austria which came into existence on 1 January 2002 regulates
all types of Gaming and betting activities.
Views on Gambling: Government of India
A commission was formed on the reference of Supreme Court in BCCI v. CRICKET
ASSOCIATION OF BIHAR & ORS. , to study the possibilities of legalization of
Betting in India and its positive and negative effects.
In that case the commission asked all Public, Stakeholders and other
organizations to provide their views on this matter on 30 May 2017. It was seen
that the responses were miscellaneous. Some were in the support while others
were opposing it.
The views which were against this idea said that if a gambler has lost its
asset, he will again try to gamble in order to gain something and in this
process he will violate all the ethics and morality. Therefore Gambling should
not be legalize.
While on the other hand some said that Gambling as an illegal activity cannot be
stopped so the better option is to legalize it and regulate it in order to
create a proper balance. They think that Gambling should be regulated as same as
It is also said that just like the Horse racing other forms of Gambling and
Betting should be legalized in order to generate a heavy revenue and to keep
Gambling in balanced form.
Policies Needed For Regulations of Gambling
It is often seen that a Gambler, in the greed to win more money and play more
and more suffers the continuous loss unconsciously.
This concept is called as 'Loss chasing
' which is a big problem of Gambling.
It is similar to the drug addiction.
There is no central law till now which can regulate the internet Gambling.
Sikkim and Nagaland are two states which permit Gambling.
In this condition where the professionals are being hired for online Gambling
and money is being invested on the professional Gamblers. Govt. needs to keep an
eye on these things and it is necessary for the government to include Gambling
in Information Technology Act so as to keep an eye in the online Gambling.
Results of Unregulated Gambling
Due to the failure in regulations of Gambling, Illegal trade is indirectly
Corrupt practices are being practiced such as Spot fixing, Match fixing in sport
particularly Cricket, other short sports where Mafias also Bet.
According to a data given by Delhi Police 1098 cases have been registered under
Gambling Act in 2016 while this count went to 1273 in 2017 and till 5 May 2018
544 cases have been registered. According to this data on an average 104 cases
per month are being registered.
A committee headed by Former Chief Justice of India R.M. Lodha said that
regulated Betting should be permitted in India so as to reduce the percentage of
Match Fixing and other such activities.
By looking on the current scenario many incidents of Match fixing and betting
can be seen in IPL which clearly indicates that Betting and Corruption is
prevailed and mainly in cricket throughout the world.
Benefits of Regulated Gambling and Betting Industry:
- Easy to control Illegal trade.
- Generate Revenue
- Protection of Society from unethical ways
- Tourism development- As more casinos will be open and interested people
will come from outside.
- Employment opportunities
By regulating Gambling and Betting all above written advantages will be
exercised by Government of India and it will be helpful in the development of
Federation Of Indian Chambers Of Commerce And Industry (FICCI) in its report in
2013 stated that underground Betting market in India is very huge and worth
approx 3 Lacs Crore.
It is possible to prevent crimes like Match fixing by legalizing the Sports
It will also prevent Players as well as Coaches to be involved in the
Around 10 million individuals in the United States live with a betting habit
issue. A betting habit happens when an individual keeps on betting
notwithstanding negative impacts that may affect their funds, connections, or
prosperity. Betting enslavement includes impulses to search out betting,
wagering, and betting, and the final product can be obliterating for the card
shark just as his or her family.
Individuals who battle with a betting or shopping issue frequently shroud their
issues out of disgrace and a craving for mystery. His frequently defers
recuperation and treatment and enables a betting dependence on lead to different
genuine impacts, including loss of occupations, fizzled connections, and extreme
obligation. Issue betting is regularly connected with emotional well-being
issues, including sadness, tension, and temperament issue. Betting issues don't
simply influence psychological wellness. Individuals who have battled with
betting advantage extraordinarily from treatment and regularly additionally need
family guiding and budgetary training to completely recuperate.
Studies have appeared more than $6 billion has been lost every year to betting
addictions. This issue is sweeping and can make the two people and organizations
frenzy and act in manners they would not ordinarily act.
Betting addictions likewise place an extreme hardship on jail frameworks, open
help programs, and lawful frameworks. There are numerous outcomes of betting
addictions that outcome in network monetary expenses.
While the dependent individual will endure amid a betting compulsion, that
individual's family will likewise confront difficulties.
The pressure that the
issue card shark encounters may cause bad tempered conduct, mystery, and
contentions. Calls from banks and bill gatherers dissolve connections. Monetary
strains sway all relatives, and stressed connections make the experience
troublesome for even more distant family individuals, companions, and
The impacts of a betting dependence are frequently very clear. An extensive
number of individuals who take part in habitual betting will utilize Visas and
charge cards to pay club or web betting associations. On the off chance that you
participate in issue betting, you will in all probability cause obligation, harm
your connections, and dismiss your objectives throughout everyday life.
The impacts of betting habit may run anyplace from lost cash to suicide. Also,
they may demolish pretty much every part of life. For instance, connections,
scholarly or office execution, mental self-view, confidence, conduct, and social
duties. Commonly, the impacts amid the withdrawal time frame incorporate certain
conditions. They incorporate compelling impulses, fretfulness and declining of
prior mental disarranges.
Suicide: For a couple of addicts, suicide might be the main way out. That way,
they set themselves far from mounting advances and obligations. In different
cases, they may make such pointless stride because of discouragement or a dread
of lawful charges.
Numerous individuals who bet too much have blended emotions about betting. They
realize they are causing issues for their loved ones. They may wind up restless
and miserable, and regularly loathe themselves. Be that as it may, the desire to
bet appears to be too incredible to even consider resisting. They believe they
can't abandon constantly, cash and feeling they have put into betting. They
can't acknowledge that they will never win back what they have lost. A few
people still trust their framework will satisfy, their karma will change or they
are because of win. Others trust that proceeding to bet is the main way out of a
circumstance they are embarrassed about.
Other individuals guarantee to stop, yet can't. They dread their friends and
family will discover them out. This drives them more profound into covering up
and further into obligation. They continue trusting a major win will end their
issues. On occasion they may win, which keeps their expectation alive until the
misfortunes mount up once more. On the off chance that they quit now, they will
feel like a washout. They should confront every one of the issues betting has
On the off chance that you resemble a great many people who bet too much, you
may have endeavoured to chop down or stop ordinarily. It is difficult to change
your betting without anyone else. Guiding can enable you to discover long haul
answers for your issues.
Uneasiness and Depression
Numerous individuals who bet too much feel pushed, on edge and discouraged. This
can make resting, considering and taking care of issues progressively
On the off chance that you have a portion of the accompanying manifestations for
over about fourteen days, filling your heart with joy to-day life troublesome,
you may have perpetual sorrow:
- You have lost enthusiasm for common exercises
- You feel discouraged, sad or peevish
- Your rest has changed (e.g., you have issues nodding off or staying
unconscious, or you rest excessively)
- Your craving has changed
- You have lost or put on weight
- You feel defenceless, miserable or despondent
- It is difficult to think and to recollect things, and your
considerations appear to be slower
- You go again and again liable emotions
- You cannot quit contemplating issues
- You have lost enthusiasm for sex
- You feel physically worn out, moderate and overwhelming; or you feel
fretful and jittery
- You feel furious
- You consider suicide
In the event that you have any of these challenges, address your family
specialist or other medicinal services proficient (a betting advocate can
likewise ensure you get the assistance you need). Inform that person concerning
your betting issues as well. Treatment may incorporate prescriptions as well as
advising and other help.
Conclusions and Suggestions
After seeing the Pros and a Cons of online Gambling one thing is clear that
Gambling and Betting has evolved in a gigantic manner and it has its Global
With the changing times the idea of complete ban on Gambling has been shifted to
the regulation of Gambling but one thing is to be noted that it will be very
difficult for the countries to regulate it.
The market size of global Gambling has been increased in the last decades. In
Asia it is increased by 39% while in Europe its growth has been recorded up to
In this context Japan has the biggest Betting market which is approximately
double the size of the Betting market of the United Kingdom.
In the life of an Individual Gambling started from fantasy and end up at the
financial loss or sometimes it leads to the enmity and self-destruction.
It always effect on the Economic status, Social status and the personal life of
In the unregulated environment gambling also support to corruption as well as
Its major drawback is financial loss which lead to be Bankruptcy sometimes and
then individual borrow money from others and thus this chain leads an individual
to certain diseases like Depression and Stress Etc.
According to current scenario in India legalization of Betting and Gambling is
not possible so state authorities should completely ban it.
Since online Gambling and Betting is performed by media therefore to regulate it
a watchdog committee should be made.
In the Skill-Centered games like Horse racing operators should focus on the
safety and protection of players.
The website which is advertising the Gambling should keep in mind that it would
not upload anything which is objectionable or pornographic.
The transactions between operators and players should be cashless so that the
government watch them transparently and they will contribute to the revenue.
Match fixing and Sport Fraud should be considered as Criminal offence.
If Gambling is legalized in India than India will collect a heavy tax revenue
which will contribute to the GDP of the country.
Tourism will be increased by the opening of new casinos that will contribute to
the GDP directly.
At the end of project I would like to suggest some points that must be kept in
mind in order to legalize Betting and Gambling.
- License should be issued for a certain period of time and there must be
proper procedure to be followed for the license issue.
- If any fraud comes under notice there must be a penalty and punishment
- The regulatory authority of Government must regularly check the monthly
well as annual reports of the licensed bodies.
- A limit should be set on Transactions.
- Last but not the least- Every transaction must be Cashless.
- The Public Gambling Act, 1867
- Sayta, Jay (January 1, 2012). Legality of poker and other games of
skill: a critical analysis of india's gaming laws (pdf). NUJS Law Review.
Archived from the original (PDF) on November 2, 2013. Retrieved January 3,
- Rediff Guide to the Net: Features: Wanna Bet?. www.rediff.com.
- Sanjay, Roy (27 October 2009). Indian online gambling market set to open
up. India Bet. Retrieved 28 October 2009
- Thompson, James (27 October 2009). Betfair and William Hill target
India. The Independent. Retrieved 28 October 2009.