What is Betting
Betting refers to the activity of placing a monetary amount on the outcome of an event. Bettors predict the results of these events and place bets with the hope of winning money. It is a form of gambling.
Gambling is a payment of price for a chance to win a prize. Games may be of chance, or skill or of skill and chance combined. The case of K.R. LAKSHMANAN Vs. STATE OF TAMIL NADU AND Ors. has been the subject matter of various debates and, in fact, seems to have set the benchmark for determining the difference between a game of chance and a game of skill. As refer to one of the landmark judgement, A game of chance is determined entirely or in part by lot of mere luck. The throw of dice, the turning of the wheel, shuffling of cards are all modes of chances where the result is wholly uncertain and doubtful. On the other hand, a game of skill in which success depends principally upon the superior knowledge, training, attention, experience and adroitness of the player. In this element of skill predominates over the element of chance like Golf, chess, horse racing. As in horse racing participants are supposed to have full knowledge about the horse, jockey, trainer, owner, turf and the composition of the race. It is a sport which depends primarily on a special ability acquired by training. Therefore, bet placed on the outcome of a game which is predominantly a game of skill would not be “gambling”. Such a view may suggest that betting on all games other than those in which the outcome is based on the roll of a dice or a similar event of chance would be legal.
Laws dealing with sports betting in India
The legal prospective of cricket betting in India is complex. With the enactment of public gambling act 1867 which forms the basis of all gambling laws in the country focuses on prohibiting the operation of public gambling houses and penalizing it. However, with the growth of online platforms the situation become complicated as it does not account for modern forms of gambling such as online cricket betting.
Therefore, lack of regulations at national level has led to state-specific laws and interpretations. India’s legal system allows individual state to enact their own laws, some states have taken proactive steps to regulate or ban online betting, while other remain silent on the issue. Some states like Sikkim, Nagaland and Meghalaya have introduced licensing systems for online gaming companies. Betting sites with licenses from these states can legally offer online betting to Indian players. However, in most other states, the legal status of online betting is still unclear.
Goa and Daman: Goa and Daman, known for their casinos, have also legalised certain forms of gambling under the Goa, Daman and Diu Public Gambling Act, 1976. While these states permit land-based casinos, the laws do not explicitly address online sports betting, creating ambiguity regarding its legality.
Maharashtra: Maharashtra has one of the strictest gambling laws in the country. The Bombay Prevention of Gambling Act, 1887, is in force, which prohibits all forms of gambling, including betting on sports. The state has not shown any inclination towards legalising or regulating online sports betting.
Tamil Nadu and Andhra Pradesh: Both these states have passed laws specifically targeting online gambling and betting. In 2020, Tamil Nadu and Andhra Pradesh introduced amendments to their existing laws, banning online gaming and betting, including on sports. These moves have been challenged in courts, leading to ongoing legal battles over their constitutionality.
The information technology act 2000 came into force and governs cyber activities and it does not mention online betting where as it plays a crucial role in blocking access to online gambling websites in the states where online betting is banned.
In 2013, supreme court of India appointed the Lodha Committee to recommend reforms in Indian cricket. One of the key recommendations of the committee was the legalisation of sports betting. The committee argued that legalising and regulating betting would help in solving match-fixing and generate significant revenue for the government however the recommendations remain largely unimplemented and legal status of sports betting continues by outdated laws.
In 2018, the law commission of India’s recommendation released a report titled “Legal Framework: gambling and sports betting including cricket in India.” The report focuses on legalising betting, taxing betting to generate revenue for the government, and preventing match-fixing and other forms of fraud in sports. despite the comprehensive nature of the report, it has not led any legislative changes. The recommendations have been debated but not yet implemented leaving the legal status of betting largely unchanged.
The sports (online gaming and prevention of fraud) bill,2018 proposed aims to regulate online sports betting and prevent fraud, including match-fixing. However, the bill has not yet been enacted into law. For now, the legal status of sports betting in India remains uncertain.
Current scenario of sports betting
Sports betting has been rapidly increased and being accessible to everyone easily through online platforms. As with the rise of mobile phones and online platforms it made it easier to place bets from anywhere. Currently betting on sports like football, cricket, basketball and horse racing has become a multi-billion industry with millions of people.
CASE LAWS:
1. Hon’ble Punjab & Haryana High Court Order, Dated 18th Apr 2017
Shri Varun Gumber vs. Union Territory of Chandigarh and Ors. (CWP No. 7559/2017):
The Punjab and Haryana High Court ruled that Dream11 is a game of skill, not gambling, because success relies on knowledge, judgment, and attention. They referenced a Supreme Court case about horse racing, which was also considered a game of skill.
2. Hon’ble Supreme Court Order, Dated 15th Sept 2017
Varun Gumber vs. Union Territory, Chandigarh & Ors. (dairy No.27511/2017)
Special Leave Petition has been filed against Punjab and Haryana High Court and is dismissed. Therefore, the said order of the High Court of Punjab and Haryana has attained finality.
3. Hon’ble Bombay High Court Judgment, Dated 30th Apr 2019
Gurdeep Singh Sachar Vs. Union of India, Bombay High Court Cr. P.I.L No. (16/2019):
The Bombay High Court sided with Dream11, saying that the platform’s games are based on skill and not chance. They also referred to the earlier ruling by the Punjab and Haryana High Court and the Supreme Court’s decision on horse racing.
4. Hon’ble Supreme Court Order, Dated 4th Oct 2019
Varun Gumber vs Union of India & Ors. (S.L.P. Cr. Dairy No. 35191/2019)
Special Leave Petition has been filed against Bombay High Court judgment and order dated 30.04.2019 and is dismissed by the Supreme Court of India.
5. Hon’ble Supreme Court Order, Dated 13th Dec 2019
Gurdeep Singh Sachar vs Union of India & Ors. (S.L.P. Cr. Dairy No.43346/2019)
Special Leave Petition has been filed against Bombay High Court judgment and order dated 30.04.2019 and is dismissed by the Supreme Court of India.
6. Hon’ble Rajasthan High Court Order, Dated 14th Feb 2020
Chandresh Sankhla v. State of Rajasthan D.B. C.W.P. (6653/ 2019):
The Rajasthan High Court agreed with the Punjab and Haryana High court and The Bombay High Court decisions, and concluded the the issue of treating the gaming platform of Dream11 is a game of skill and not gambling. They dismissed the case and rejected the idea of Dream11 being illegal, confirming its legality.
7. Hon’ble Rajasthan High Court Order, Dated 16th Oct 2020
Ravindra Singh Chaudhary v. Union of India (D.B. Civil Writ Petition No. 20779/2019):
The Rajasthan High Court held that Dream11 players are not gambling on the outcome of any game, as the result achieved by player of online fantasy sports is wholly independent of the real-life game’s result and dismissed it.
8. Hon’ble Rajasthan High Court Order, Dated 22nd July 2021
Saahil Nalwaya v. State of Rajasthan & Anr. (D.B. Civil Writ Petition No.2026/2021):
The Rajasthan High Court upheld the legality of Dream11, acknowledging it as a legitimate business. They also ruled that such businesses are protected by the Constitution, specifically Article 19(1)(g), which gives people the right to practice any profession or carry out any trade and said that the present matter is covered in Ravindra Singh Chaudhary v. Union of India judgment and further petition dismissed.
9. Hon’ble Supreme Court Order, Dated 30th Jul 2021
Avinash Mehrotra v. State of Rajasthan & Ors. (S.L.P. Civil Diary No. 18478/2020):
Special Leave Petition has been filed against Rajasthan High Court judgment and order dated 14.02.2020 and is dismissed by the Supreme Court of India as the matter is no longer res integra as special leave petitions have come up from Punjab and Haryana high court and have been dismissed by this court. Also from Bombay high court, special leave petition has been dismissed.
10. Hon’ble Madras High Court Order, Dated 3rd Aug,2021
Junglee Games India Private Limited & Anr. Vs State of Tamil Nadu & Ors. (W.P. No.18022/2020)
The Hon’ble Madras High Court held that as games based on ‘preponderance of skill’ are protected under Article 19(1)(g) of the Constitution, the restrictions imposed by the State on conducting or playing such games should satisfy the tests of reasonableness and proportionality.
Advocate Kanishk Agarwal
CONCLUSION:
Online Fantasy Sport platform, has consistently been held as a skill predominant and as a legitimate business activity, duly protected under Article 19(1)(g) of the Constitution of India. The format of the online fantasy sports as a ‘game of skill’, has been consistently recognized by multiple High Courts across India and the Supreme Court of India.it is already judicially determined that the game is game of skill and it cannot be given the character of ‘gambling’ by legal fiction and prohibited.