With the resurgence of the Mahadev Betting App in recent headlines, the legality of betting in India once again comes under scrutiny. Amidst the ongoing debates and controversies surrounding this online gambling platform, there arises a pertinent question: is betting legally permissible in India? In order to address this issue comprehensively, it is imperative to delve into the legal framework governing gambling activities within the country.
IS GAMBLING LEGAL IN INDIA?
Gambling is governed by the Public Gambling Act of 1867, which explicitly prohibits gambling. As per this act, it prohibits the operation of public gaming houses, with violations subject to fines up to Rs. 200 or imprisonment for up to 3 months. Prohibited activities include owning or managing gaming houses, gambling in them, or providing funds for gambling within these premises.
Following independence, gambling was designated as a subject falling under the purview of the state list as per the Indian constitution. The state list comprises important subjects on which state governments have the authority to enact laws. Consequently, gambling laws in India are subject to the jurisdiction of individual states, granting them the discretion to either adhere to the existing framework established by the Public Gambling Act or enact their own legislation concerning this matter.
In India, gambling laws vary from state to state. For instance, Telangana and Andhra Pradesh have banned gambling altogether, while Sikkim and Goa allow certain forms of it under regulation. This means that the legality of gambling depends on the laws set by each state government.
THE STANCE OF LAW ON ONLINE GAMBLING
Since the Public Gambling Act of 1867 was pre-independence, there is no mention of online gambling. But Section 12 of this Act reads that “nothing in the foregoing provisions of this Act contained shall be held to apply to any game of mere skill, wherever played.”
This means that any game that isn’t a game of chance but a game of skill shall be considered permissible as per this act.
The difference between a game of chance and a game of skill is that if a game is luck-based and doesn’t have any skill involved in it, then that game is a game of chance, and if a player is applying his or her knowledge or skill to influence the result in their favor, then the game is a game of skill and is permissible by law.
On this, the Supreme Court delivered a judgment dated in the year 1967 in the case of State of Andhra Pradesh v. K Satyanarayana (1967, Supreme Court). The Court ruled that playing rummy for stakes in clubs is not considered an offense, as rummy is determined to be a game primarily based on skill rather than chance. The Court reasoned that Rummy involves memorization of card patterns and strategic card management, highlighting the skill element over chance.
And in the case of K.R. Lakshmanan vs. State of Tamil Nadu, the precedent set by the Supreme Court in the case of K.R. Lakshmanan distinguished between games of skill and games of chance. Applying the test of predominance, the Court established the following principles:
- A game primarily based on chance, regardless of whether it involves stakes, constitutes gambling.
- A game primarily based on skill, regardless of whether it involves stakes, does not constitute gambling.
- A game that involves a mixture of chance and skill is considered gambling if chance predominantly determines the outcome.
- Conversely, a game that involves a mixture of chance and skill is not considered gambling if skill predominantly determines the outcome.
In India, there is currently no legislation that explicitly defines or regulates online gambling. Consequently, there is no specific law against it; rather, the legality of online gambling hinges on whether it qualifies as a game of skill or a game of chance. This determination is crucial, as games of skill are generally exempt from gambling restrictions, while games of chance may be subject to regulation or prohibition under existing gambling laws.
