Category: SPORTS LAW

• Introduction:

The Sports Law and Welfare Association of India is a national non-profit professional organization working towards the common goal of understanding, promoting and promoting sports law in India and promoting sport by bringing together lawyers and athletes. It advises on various issues including sport regulation, governing bodies, general sports law issues, intellectual property issues in sport and litigation before sports courts for sportspeople and sports federations. The Sports Authority of India was established to meet the need for a leading organization to coordinate various sporting activities in India.[1] To address this problem, a system of sports dispute resolution, including arbitration, mediation and arbitration has been introduced. The National Sports Federation was formed to resolve sport-related disputes. In 2010, the Secretary General of Indian Sports Law and Welfare Association submitted the Indian Olympic Association a draft of the Sports Tribunal (India) Act 2010, declaring that there should be an Indian Arbitration Court for Sport.[2]

• Role of Courts and Tribunals:

One of the most important issues in Indian sport today is the settlement of disputes and that is the settlement of disputes by the National Sports Federations (NSFs). The problem facing Indian sports law is the intervention of the courts by the Indian sports authorities. Trying to understand the problem by looking at an example of what happened in court when the International Olympic Committee banned the Indian Olympic Association and declared that it had not used the international mechanism for settling sports-related disputes between the federation and national sports organisations.[3]

National sports federations (NSFs) have largely failed in India to establish satisfactory internal mechanisms and forums to address these issues. For the reasons outlined above, athletes are in the unenviable position of having to resort to national courts to resolve their complaints. This problem is exacerbated by the fact that they also failed to include arbitration clauses in their regulations which give athletes the right to appeal to the International Court of Sport (CAS).[4]

It should be noted that sports disputes tend to be based on complex legal issues. However, it should also be noted that the Indian Sports Authority, which is affiliated to the Indian Olympic Federation, is very much involved in the complex and unreasonable manner of dispute resolution.[5]

Sport has been one of the most important parts of Indian history, from the Indus civilisation to the Mughal dynasty and colonial times, but our country has not developed an effective method of resolving disputes to resolve problems in the field of sports law. This article discusses cases in which arbitration has proven to be an effective way to address problems at national and international level. To this end, we will discuss issues in this area and propose how to refine the mechanisms of sports arbitration.[6]

The only thing that matters in sport is that people gain fame and recognition for their talents and extraordinary abilities but bad practices such as corruption, special treatment, labour abuse, drug abuse, and politics have begun to undermine the sanctity of sport. This article traces the development of sports law and highlights some of the key issues of sports law. The first part is concerned with the introduction of sports law, including the development of the law, its differences between amateur and professional sports, international sports law, global sports law, etc.[7]

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[1] https://www.indialawjournal.org/archives/volume3/issue_2/article_by_Gaurang.html

[2] http://www.legalservicesindia.com/law/article/1487/2/WHERE-DOES-INDIA-STAND-IN-SPORTS-DISPUTE-RESOLUTION

[3] http://www.legalservicesindia.com/law/article/1487/2/WHERE-DOES-INDIA-STAND-IN-SPORTS-DISPUTE-RESOLUTION

[4] https://www.lawinsport.com/topics/item/the-need-for-better-dispute-resolution-systems-in-indian-sport-and-the-government-s-new-guidelines

[5] https://www.mondaq.com/india/sport/769938/sports-law-in-india

[6] https://www.jurist.org/commentary/2020/04/yadav-gupta-sports-arbitration/

Introduction:

Sports is a field which is liked by every person these days and therefore ‘sports’ betting has become very common in today’s world.’ So, if the Gambling in this sports industry comes into picture then the value of the game is lost. Country like India where in every city people follow cricket and because of introduction of Indian Premier League the gambling is also increasing and because of that the game which is known as ‘Gentlemen’s Game’ is now losing its value. People gamble to earn more money; just by predicting the result of the game and by which match fixing also comes into picture. For financial benefit people who are involved in such scandalous activity do not care about anything and they just exploit the spirit of the game.

Sports Betting in India:

Talking about Sports betting in India then we can definitely say that it is Illegal in the country except the horse racing which considered to be legal. Every state in the country has their own laws to curb the betting issue. India has that long love affair with the game of cricket and which is never ending. Betting on Indian premier league outpaces all other betting on major sportsbooks serving India.[1] In India cricket is most famous game and football is second most popular sport which is watched by Indian audience. There are many other games such as badminton, table tennis, lawn tennis which is also watched by Indian Audience but the fans in India ae not so much crazy for these games when compared to cricket and football. So, the uncertainty of the outcome is an essential part of sport’s attraction.

Now a days the issue of Match Fixing is a major threat to sport and because of that online gambling in India is also increasing. Doing these malpractices for earning financial profits. The online gambling racket is growing so fast these days that the rate of organized crimes is also increasing and types of betting are also increasing. By fixing a match result it defeats the very purpose of that game and in this process many professional athletes who are playing the game gets involved to earn more money. There is also increase in corruption due to this activity and it is a fundamental and worldwide threat to future of professional sport.

Laws Relating to Sports Betting:

According to a report by ‘All India Gaming Federation’, the India Exchequer loses almost Two Lakh Crore each year due illegal betting in sporting industry in India. When the analysis is done it showed that about 50 Million USD is wagered on every IPL match which is a huge loss to the economy of the country also and which is against the law.[2]

In India we have varied sets of aw to get rid of Illegal betting in sports industry such as, Section 30 of Indian Contract Act, 1872 makes void and unenforceable any agreement by way of wager except with regards betting on horse racing.[3] Then Foreign Exchange Management Act, 1999 (FEMA) its provisions with the FDI policy prohibits the remittance of income from lotteries, sweepstakes, racing as well as investment in lottery, and gambling and betting business also. Payment & Settlement System Act, 2007 gives sole power to Reserve Bank of India to empower to regulate all forms of electronic payment which makes it compulsory for each individual to adhere to those guidelines.

Prevention of Money Laundering Act, 2002 makes it compulsory for the entities which exclusively carrying on business of offering game of chance for cash as well as casino activities then these entities must adhere to this Act and it also includes maintenance of records also.

IT Act, 2000 prohibits ISP’s not to be a platform for any activity which encourages gambling or betting.

Cable Television Network Rules, 1994 prohibits advertisement of gambling activities.

And finally, Income Tax Act, 1961 under Section 115B and 194B keeps checks on the income gained through winning of lotteries, races, betting etc. as taxable.

Conclusion:

There is no specific law to govern the gambling and betting in India. There is a need to implement the above said laws properly to curb the issue and to increase transparency there is a need to implement the laws related to gambling and betting activities.

To sum up ‘The charm and Integrity of the Sports need to be safeguarded at any Cost’.

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[1] Sports Betting and Laws Relating to It (legalserviceindia.com)

[2] Gambling Laws in India – #1 Source for Gambling Laws and Sports Betting

[3] Section 30 of Indian Contract Act, 1872

Introduction:

In the recent past the whole context of sport events has changed. There has been significant increase in the income levels and awareness. Sporting events are no longer a test of skill and strength but also an entertainment and recreational event. There has been a significant inflow of capital and business through sponsorships, rise in income of sporting bodies, appearance fee charged by the sports personalities, etc.

The tax law of India provides that in case of sportsmen or artists participating in such events or shows, all income accruing or arising or deemed to be accruing or arising, received or deemed to be received in India is taxable in India. Section 115BBA of Income Tax Act, 1961 provides that when any sportsperson who is not a citizen of India and is a non-resident participates in India in any game or sport or advertisement or makes any contribution in form of article to any magazine, journal or newspaper the amount of income over it will be charged at the rate of 20% plus surcharge as applicable.

Taxation in India:

The commendability for sports in India especially Cricket is unmatchable. With the introduction of various premier leagues such as Indian Premier League (IPL), Pro Kabbadi League (PKL), Indian Super League (ISL) and Badminton Premier League (BPL) the Indian crowd is getting attracted towards it and a huge turnout of the fans can now easily be witnessed in the stadiums. The charm of Indian as well as foreign players makes such leagues not only interesting but also helps in the generation of huge amount of income. But the question comes that how the income of all the players will be taxed in India? To answer this question Section 194E of Income Tax Act, 1961 comes into picture. According to the said section any person who pays money to a non-resident sportsman or entertainer or pays money to sports institution or an association or income referred under Section 115BBA is required to deduct tax at source under Sec 194E. However an exception has been made under it that if a non-resident person is paid less than ₹2500 in an annual year then there is no requirement to deduct tax at source.

To boost the international sporting events in India leverage has been provided where an exception has been granted under Section 10 of Income Tax Act, 1961. Section 10(39) talk about “Income from international sporting event.” It states that any specified income of any specific person from any international sporting event is fully exempted that event is approved by any international body, involves participation of more than 2 countries and is notified by the Central Government in this regard. However the income generated by the players under such sporting tournaments is not subject to any kind of exception. India in the recent past has successfully organized various international games which include Commonwealth Games 2010, ICC Cricket World Cup 2011, Men’s Hockey World Cup, etc. It only helps in boosting the economy but also helps in increasing the FDI in India. However, with the introduction of professional sports league such as IPL, PKL and other premier leagues that make enormous profits are not exempted by the government which leads to unambiguity. Under Section 12(A) an exemption has been granted to certain sports organizations that work without profit motive and are recognized as non-profit entities. 

Goods and Services Tax Act, 2017:

On the GST (Goods and Services Tax) front an exemption has been provided to the sports authorities that there is no GST payable on the services provided by a recognized sports body to a recognized sports body. However, as far as the sports accessories are concerned 12% GST is levied upon sports accessories.

In the recent past various applications are revolving in the market where fantasy sports leagues are organized and there has been a flow of money. In the case of Mahalakshmi Cultural Association vs. The Director, Inspector General of Police & Ors.[1], Supreme Court held that such fantasy leagues are merely a skill based game. The terms and conditions explicitly clear the air on how much tax will be paid after a winner is declared. If a person wins an amount above ₹10000 then 30% tax will be charged upon it. However, as it is termed as skill based game and is regulated by Federation of Indian fantasy sports there are certain guidelines that have to be followed by any person who is registering for it.

Since the judiciary is keeping a close eye towards legalizing the betting and gambling subject to certain rules and regulations, it is required to make respective changes in the domestic taxation laws as well. Proper legislative as well as descriptive information is required while legalizing all such activities in India.

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[1] Special Leave to Appeal (C) No(s).15371/2012

Fair hearing is a well settled principle of natural justice which enables the party to move to the unbiased adjudicating authority if the rights of any such party or a person are infringed . However, the same principle has been ignored while adjudicating any sports matter be it related to match fixing, sexual harassment, age fraud, etc. The concerned sports authority takes the cognizance of the matter and creates a committee that work autonomously and investigate the matter. Since, the committee formed may pass decision in the favor of the sports authority that appointed it; thereby it lacks transparency and might affect the career of that sports person adversely.

In 2013 IPL spot fixing case, S Sreesanth who was the part of the squad of 2011 World Cup winning team was booked under the illegal betting and spot fixing charges. The advisory committee formed by BCCI imposed a life ban upon him, after which he challenged the decision in the Supreme Court where the Hon’ble Court in 2019 released the life ban imposed upon him. However, the court took almost 6 years to adjudicate upon the matter and give relief to him. This was not the first incident where the court took so many years to adjudicate upon the matter. There have been several instances where the court found themselves in a position where they were helpless to adjudicate upon the matter as there was no law to regulate such issues.

The best way to adjudicate any sports matter in India is to move ahead with the provisions of Arbitration and Conciliation Act, 1996 or appoint a mediator. Since, the decision of the mediator is not binding upon the parties it’s better to move ahead with the provisions of arbitration.

Arbitration is one of the best methods to adjudicate upon the matter where any sports related conflict has arisen. In India any matter related to arbitration is dealt by the Arbitration and Conciliation Act, 1996 also known as Indian Arbitration Act. The Indian Arbitration Act is based on the UNICITRAL Model Law. The term arbitration means that if there is any dispute between two persons the matter despite of going to the court is resolved by an arbitrator who acts independently and passes an award which in terms of Indian Arbitration Act is referred to as “domestic award.” Since there has been a revolution in the sports in the past few years be it in terms of fitness, broadcasting rights, countries own leagues, etc. or fantasy cricket league apps but the one place where revolution is required is in the legal framework of the sports industry. Currently the disputes are either resolved by the advisory committee established by the authority or is done by the court which unnecessarily increases the burden on it and is a time consuming process. It is necessary to give a different shape to it and refer sports related disputes to the Arbitration Board which will not only help in maintaining transparency but will also help in the speedy disposal of the case.

In India also the Alternative Dispute Resolution (ADR) process must be adapted since the arbitrators appointed will have the expert knowledge in that field which will not only provide faster disposal of the case but will also help in reducing the burden over the court. The success of CAS is the testimony to the ADR process and India must adapt it and set an example to the outside world.

• Introduction

Sports have always played an important role in everyone’s life. It not only builds the character but also helps the person to become confident about the work he do. Sports have always been the most entertaining source in the world and the fact that the sports industry contributes to almost 3% of the global trade confirms the same. But what happens when anyone brings disgrace to the game? It creates outrage among the lovers of the game and disturbs the peace of the country.

In the past 2 decades various international events were organized in India. From Commonwealth games to hockey and cricket world cup, India has emerged one of the biggest organizers in the world where they got a chance to show the development of the country but such events creates problems related to media rights, sponsoring, licensing and legal sporting practices.

• Need of sports law

In recent times there have been various instances where the sporting world was crushed by the scandals and controversies. The events such as IPL spot and match fixing, women hockey players putting allegations of sexual harassment, doping, etc. Hockey is considered to be the national game of India. India won gold 8 times out of 12 at the Olympic events held between 1928 to 1980. But after 1980 India failed to qualify for the finals and the events turn into shock when India failed to qualify for the Beijing Olympics in 2008. To regulate such incidents a committee was required to investigate but due to absence of any law or regulations no such committee was established. These events expose the dark side of sporting world which is considered to be highly competitive.

Simon Rotenberg’s in 1956 connected the sporting world to the economics where he discussed about the uncertainty of outcome and the monopolistic nature of the labor market. The generation of revenue by organizing such events needs to be regulated but there is no regulatory authority.

These instances created an environment in the country where the need for a regulation arose but no legislation or regulations were formed to curb such activities.

• Ambit of sports Law:

The laws where sports law will play a major role are as follows:

• Labor Law:

Most of the player works on the contract basis with the related sports authority. A need is there where there must be a fixed pay scale. Not only this players need to negotiate on the working hours, working environment, etc. that needs to be decided by the authority. Also such norms will help in building the sports field more transparent and it will be the best in the interest of the game.

• Drug Use:

There are various drugs that are banned by the Doping Agency. Drugs that are consumed by the players are performance enhancing drugs that boosts the body. There must be explicit mentioning of the banned drugs, punishment for using the same, authority to check it, etc.

• Sexual Harassment Laws:

In the recent past there had been many instances where the sportswomen have raised their voice against the sexual harassment by the coaches or the people associated with the game. To avoid and to control such acts a law is required to grant punishment to such people because the person of such cadre who is representing India or the State is not expected to cross the line.

• Betting Laws:

The competitive spirit of the sports has hit to various lows where the players were found involving in fixing the game. Laws must be framed in such a way that these acts could be controlled and players who are found involving in such illicit acts must be punished accordingly.

• Broadcasting Rights:

According to Indian Competition Act if any agreement that is creating appreciable adverse effect is void. The distribution of broadcasting right must be brought within the ambit of sports law to avoid further chaos.

• Conclusion

The main objective of the sports law is to maintain the competitive spirit and if anyone who tries to break it must be punished. This law will create an authority that will have the adjudication power as well as it will create an authority that will help in maintaining the spirit of the game.