- Introduction:
In India the gambling rules and regulations are regulated by The Public Gambling Act, 1867. According to the Act gambling is considered an illegal activity in India. Also, if any person visits a place where gambling takes place, it is also considered illegal. In the recent past on the internet front we have witnessed an increase in the number of mobile apps and software where a certain amount of money is bid on a player or a team and various card games which are still out of the ambit of such rules and regulations. However, the courts have taken the matter in their hands and have passed several rulings which might help the administration to regulate such online gaming apps.
- Legislation in India:
In the recent past there has been a buzz that the government is planning to legalize the gambling in India with certain rules and regulations. The gambling rules are laid down in The Public Gambling Act, 1867 and it does not talk about anything related to online gaming platforms. Since there has been an evolution in the internet world in the past 2 decades and since gambling is considered illegal it can be inferred that online gambling is also illegal.
The rules relating to the internet and technology are regulated by The Information and Technology Act, 2000. The act provides punishment for online activity but it is important to protect the rights of internet users by framing and amending the laws in such a way that such online gaming apps can be brought within the ambit of said act.
In India there is no explicit law that talks about the regulations related to online gambling however, Maharashtra has framed laws related to online gambling and they have completely imposed a ban on it. However, another state i.e. Sikkim has made online gambling legal with certain restrictions imposed upon it. It means that there are different views of the legislators upon the framing of any law related to online gambling.
In India there are various sectors where FDI (Foreign Direct Investment) is not allowed by the government and one such sector is gambling and betting including casinos. The involvement of private players is strictly prohibited in these sectors as the rules related to FDI are regulated by Foreign Exchange Management Act, 1999. Since the act deals with the provisions relating to the deposit of foreign currency in India it is important to note that no such provision has been laid down in the act where one can regulate such activities. Not only this, various other things such as foreign investment, foreign collaboration, licensing and franchising, trademark, brand name, etc. strictly prohibited in gambling and betting sector.
- View of Indian Courts:
In India the people have shown their interest in fantasy sports and there has been a surge in the popularity of such online gaming apps. Applications like Dream 11, Mobile Premier League, Ace2Three, Rummy Culture, etc. have gained popularity amongst the people and most of the youth is getting attracted towards it. Many people have opined that such online fantasy games involve money and have resulted in gambling. To regulate such scenario cases were filed against such mobile apps. Few of the landmark cases are discussed below.
In the case of State of Andhra Pradesh vs. K. Satyanarayana[1], the Hon’ble Supreme Court held that, “the game of rummy requires certain amount of skill because the fall of the cards has to be memorized and the building up of Rummy requires considerable skill in holding and discarding cards.”
The same opinion was formed by the court in the case of Dr. K.R. Lakshmanan vs State Of Tamil Nadu And Anr[2], theHon’ble court held that, “the game of horse racing requires skill and cannot be termed as gambling.”
With the evolution of fantasy sports in India we have witnessed an increase in the cases related to fantasy sports in India where the court has taken the cognizance of the case. Similarly in the case of Varun Gumber v. U.T., Chandigarh[3], where the validity of Dream 11 was challenged, the Punjab and Haryana High Court held that “the fantasy sports company cannot said to be falling in the gambling activities as the same involves the substantial skills which is nothing but a business activity with due registration and paying the service tax and the income tax.”
- Conclusion:
It is clearly evident that the Indian courts don’t consider such online websites and mobile apps as a means of gambling so it is important that the Indian legislators must frame the relevant laws in such a manner that all the betting and gambling related activities can be brought under a single umbrella. The online gaming is developing and people are becoming more advanced so to curb down the illegal activities stricter punishment must be made.
[1] 1968 AIR 825, 1968 SCR (2) 387.
[2] 1996 AIR 1153, 1996 SCC (2) 226.
[3] Judgment dated 18th April 2017 in CWP No. 7559 of 2017.