A PROJECT REPORT ON

ASPECTS INVOLVED IN LEGALIZING GAMBLING IN

INDIA
IN PARTIAL FULFILLMENT OF REQUIREMENTS
FOR SEMESTER-I BA LLB

IN

SUBMITTED TO: SUBMITTED BY:

Ms. ALISHA VERMA DIVIJ MAROTHIA

ASSISTANT PROFESSOR LAW REG. NO. - 191301054

SPORTS LAW
 TABLE OF CONTENTS

S.N TOPIC
O
1. WHAT IS GAMBLING

2. GAMBLING IN INDIA

3. ON WHICH GAMES CAN YOU LEGALLY BET IN INDIA?

4. WHY ARE THERE DIFFERENT LAWS WITH RESPECT TO GAMBLING IN

INDIA?

5. GAMBLING AND BETTING ACTS IN INDIA

6. SHOULD GAMBLING BE LEGALIZED IN INDIA?

7. CONCLUSION

8. WEBLIOGRAPHY
 1. WHAT IS GAMBLING?

Gambling is the act or practice of risking the loss of something important by taking a chance
or acting recklessly.
Gambling is the wagering of something of value (referred to as "the stakes") on an event with
an uncertain outcome, with the primary intent of winning money or material goods.
Gambling thus requires three elements to be present:
1. Consideration (an amount wagered)
2. Risk (chance)
3. A prize.
 2.GAMBLING IN INDIA

While the age-old debate about what form of gambling is legal or not continues; it’s pretty
evident that Indians love to gamble. According to a report published by the International
Centre for Sports Security (ICSS), the betting market in India might be worth over US$130
billion!
The Public Gambling Act, 1867 ("Gambling Act") is the general law governing gambling in
India.
The state legislatures, under the Constitution of India, have been entrusted with significant
regulatory leeway to form state specific gambling laws. The Gambling Act is the central
enactment which has been adopted by certain states in India and other states have enacted
their own legislation to regulate and govern gaming/gambling activities within their territory
("Gambling Legislations").
Most of the Gambling Legislations have been enacted prior to the advent of virtual or online
gambling and hence these Gambling Legislations primarily refer to gaming/gambling
activities at the physical premises.
Goa and Sikkim are the only exceptions which have allowed gambling and betting in their
state, subject to regulation of their respective state Governments. List II of Seventh Schedule
of the Indian Constitution, endows the state Governments with the power to legislate on
matters concerning gambling and betting.
The state of Goa has allowed gambling by enacting the Goa, Daman and Diu Public
Gambling Act, 1976.
The state of Sikkim has also legalised gambling by enacting Sikkim Regulation of Gambling
(Amendment) 2005.
 3. ON WHICH GAMES CAN YOU LEGALLY BET IN INDIA?
Nowadays, you can only bet on a few sports/games, that too in particular states. Currently,
horse racing, online poker, online rummy, lottery, and a few casinos are legal in India. To
understand the convoluted stance of each state on the legality of these sports will take time
and patience.

GAME OF CHANCE AND GAME OF SKILL

Gambling is understood both under its traditional form as well as modern avatar. The
traditional gambling is understood in the context of physical space, brick and motor format,
whereas modern gambling consists of computers connected offline or online, mobile phones,
internet, etc. The Gambling Legislations exclude 'games of skill' from the purview of
gambling and

hence doesn't attract the penal provisions.

 4. WHY ARE THERE DIFFERENT LAWS WITH RESPECT TO
GAMBLING IN INDIA?

Different state have different gambling laws even though there are centralized Acts in place.

Why do gambling/betting laws differ in different states?

The answer is the Seventh Schedule of the Constitution of India which explicitly gives states
the right to legislate and make policies related to “gambling and betting”. It is quite clear in
the Seventh Schedule Entry 34 List II which says states could legalize gambling should they
choose to do so.
Every state government is free to enact as well as legislate gambling laws as per their
discretion. Also, the Central Government cannot intervene in any of the state proceedings.
To date, most Indian states have only made laws against gambling, while 13 states have
legalized lottery, and two states (Goa and Sikkim) have legalized many other forms of
gambling. With a country as diverse as India and 29 separate states, you can only imagine the
variance in gambling laws.

Legal Casino Gambling in Goa

Goa has made two amendments to the Goa, Daman and Diu Public Gambling Act, 1976 to
legalize certain forms of gambling. The relevant section from that act is listed below:
26[13A. Authorised Game.– (1) Notwithstanding anything contained in this Act, the
Government may authorised any game of electronic amusement/slot machines in Five Star
Hotels 27 {and such table games and gaming on board in vessels offshore as may be
notified} subject to such conditions, including payment of such recurring and non-recurring
fees, as may be prescribed.
27 Inserted by the Amendment Act 13 of 1996.
As of October 2011, there are seven land-based casinos and several offshore casinos that
operate legally in Goa.

Legal Gambling in Sikkim

Sikkim is a second Indian State that has legalized gambling.
1) The Sikkim Casino Games (Control and Tax Rules), 2002 gives the Sikkim Government the
authority to grant licenses to individual and business interested in operating casinos.
2) The Sikkim Regulation of Gambling (Amendment) Act, 2005 gives the Sikkim Government
the authority to authorize gambling on certain days and to make specific gambling houses
legal at their own discretion by way of a license.
Sikkim also became the first Indian State to legalize internet gambling.
 5.GAMBLING AND BETTING ACTS IN INDIA

• The Public Gambling Act, 1867

• Payment and Settlement Act, 2007
• Assam Gaming and Betting Act, 1970
• Bombay Prevention of Gambling Act, 1887
• Goa, Daman and Diu Public Gambling Act, 1976
• Karnataka Police Act, 1963
• Madhya Pradesh (C.P.) Public Gambling Act,1867
• Madhya Bharat Gambling Act, 1949
• Orissa Prevention of Gambling Act, 1955
• Public Gambling Act, 1867 Constitution of India, Seventh Schedule, List II, Entry 34
• Punjab Public Gambling Act, 1867
• Sikkim Online Gaming (Regulation) Act, 2008
• Tamil Nadu City Police Gaming Rules, 1949
• Tamil Nadu Gaming Act, 1930
• The Andhra Pradesh Gaming Act, 1974
• The Andhra Pradesh Gaming Rules, 1976
• The Delhi Public Gambling Act, 1955
• The J. & K. Public Gambling Act, 1977
• The Kerala Gambling Act, 1960
• The Meghalaya Prevention of Gambling Act, 1970
• The Pondicherry Gaming Act, 1965
• The Rajasthan Public Gambling Ordinance, 1949
• The West Bengal Gambling and Prize Competitions Act, 1957
 06.Should gambling be legalized in India?

 Advantages

Curb black money and terror financing

The reasons to look at legalising and regulating gambling are several. First, gambling is
already operating in a spread out and operating in a huge way. Despite devoting several
legal measure andc covert actions, legal enforcement authorities are not able to curb it.
Gambling and betting is mostly done very secretly and which is handled in a delicate
manner. It is mostly headed underworld and strong syndicates who use the unaccounted
money earned from gambling activities for nefarious activities. These activities could
include terror financing. So legalising the activity will not only help curtail an important
source of black money and stop funds flowing to terror agencies.

Huge Revenues

Estimates about the size of the gambling market in India vary according to various private
and government agencies. According to KPMG report, the size could be around $ 50- $60
billion, while other, more recent, studies from financial institution peg the value even to
higher numbers. Even a normal estimate suggests with just 15 per cent GST, the
government could earn tens of thousands of crores by legalising sports betting. If online
gambling and casinos are also permitted in a strong restrictive way, the estimated tax
revenue very huge to both state and central government. These can be used to fund health
and other constructive projects of the government.

Employment opportunities

Apart from revenue generation, legalizing the gambling will surely create huge
employment. Globally, wherever gambling is regulated, it has created a massive
opportunity for employment generation. In India it could create direct and indirect jobs for
around 25-40 lakh. How? U.S. employs over 2.5 lakh people in the gambling industry,
while over 1 lakh individuals are employed in the U.K.
 Disadvantages

Spoils the integrity:

Integrity is a core component in any activity, but in sports and games is crucial to its
success. It serves the basis for the enjoyment of participants and spectators. But if the
gambling and betting are legalized, integrity and honesty will be under great threat. Match
fixing and spot fixing would drastically increase. Athletes and players will be tempted.
Psychologically, players attracted to gambling naturally because of their competitive
nature, media success, money and self-assured sense of entitlement.

Affects common man

If betting were to be legalised, this lower class of the country will affect. Betting attracts
the common man to try their luck and tempts them to play with money. It is very tough to
imagine the consequences of a poor person losing his hard-earned money or his life saving
on betting. Law commission report on legalizing gambling

India’s Law Commission has submitted a recommendation to government that sports

betting and gambling be legalized and regulated. In a report titled Legal Framework:
Gambling and Sports Betting including Cricket in India, which was submitted to law
minister, the Law Commission said that shutting down illegal gambling and enforcing a ban
on sports betting had failed to produce the desired results, leading instead to an increase in
illegal gambling and black money circulation. “Since it is not possible to prevent these
activities completely, effectively regulating them remains the only viable option,” the
report said.

Among the recommendations is for a law to be enacted for the regulation of gambling that
can then be adopted by India’s various states. The report also recommends that gambling
services should be offered only by licensed Indian operators who would be granted licenses
by the regulatory authority and that gamblers should have the number or size of bets capped
within a given time period.
 7. CONCLUSION

There is an overwhelming support backed by the law commission report for the idea to
legalize gambling. Some of the important points put forward are the failure to control illegal
betting (large scale), government losing a huge revenue-earning opportunity, employment
generation. So the only recourse left is to legalise, regulate and tax which can lead to huge
income. Those these opinions have strong points, but it is no guarantee that legalising betting
will generate revenue as projected, How? Did the strong economic steps like demonetisation
and giving more power to tax authorities have made a huge impact on the revenue inflow or
curbed black money? Legalizing gambling would also lead to demands for legal frame work
other nefarious activities like prostitution, drugs etc. So the government has to weigh the pros
and cons before indulging the act of legalizing gambling, which can lead to a complex impact
on the society.
 WEBLIOGRAPHY
 https://sportsbetting.net.in/gambling-laws/
 https://www.careeranna.com/articles/should-gambling-be-legalized-in-india/
 http://www.mondaq.com
 https://en.wikipedia.org/