A LEGAL CONUNDRUM ON INTERNET GAMBLING

By : Aditya Suresh & Asif Pasha Arief Batcha, Law Students, Kristu Jayanti College of Law, Bangalore

Abstract :

Online gambling is considered one of the opening acts of this century. In this era of quick technological advancement and widespread internet access, unregulated online gambling affects both individuals and the country. In this paper, we have concentrated on problems with the current legal system, including its advantages and disadvantages, and instances of unfair application of the law. In addition, we have attempted to explain why online gambling regulation is necessary. Therefore, the current study examines the legal framework that governs online gambling. According to the study, there is an urgent need for internet gambling regulation in India, which will protect the rights of the government, its people, and the organizations taking part.

Keywords : conundrum, online gambling, regulation

Introduction :

Gambling is the wagering of money or something of value 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:

Consideration (Stake)
Risk (Chance)
Price (Reward)

In simple words, gambling involves playing and betting money or money’s worth on a gambling platform, hoping to win money or something valuable. There are chances to win or lose the bet.

Gambling can be categorized into two broad types which are (1). Skill based and (2). Chance-based gambling.

Adults and teenagers are easily attracted by online gambling. For Internet gambling, all that a person needs to gamble online is a smartphone, tablet, laptop, or desktop with reliable internet connectivity. (Reliable internet network is a medium that allows anyone to gamble at any place, anytime.)

Literature Review:

According to Gainsbury et al. (2014), "internet gambling is classified as an online game where payment is required, monetary prizes are awarded, and the game's outcome is primarily determined by chance." Likewise, Gainsbury mentioned the disadvantages cited by online gamblers, including that it is easier to spend money online, but still the user has to be concerned about their bank account details.

Young adult online gamblers noticed a relationship between social casino games and online gambling, according to Hyoun S. Kim et al. (2017), with several participants claiming that they switched to online gambling after playing for free on Facebook.

Gainsbury and Robert Wood (2011) noted that as internet gambling becomes more popular and acceptable, there will be more competition among gambling websites as a result of consumer demand.

Mullan and Rege (2010) studied the spread of internet gambling by investigating the types, techniques, and organizational dynamics of online crime at the portals of internet gambling sites.

According to Ghagas and Gomes (2017), when players can regulate their gambling behavior and can cut back or stop when engaging in heavier gambling, their behavior is deemed to be moderate.

Research Questions:

How is gambling governed by the law?
Whether existing legal provisions include online gambling?
What legal issue arises when current laws are applied to online gambling?

Objectives:

The main objective of the study is to identify the legal regulation of online gambling.

Methodology:

The study is mainly a secondary one. In order to identify real gambling behavior, tracking data tools were used to thoroughly review the research done and the literature published. In this search, only academic journals used players’ real gambling data to analyze their behavior, so secondary data has been collected from available literature on internet gambling from different journals, books, articles, newspapers, etc.

Study Results:

Legal regulation of gambling in India:

India has a population of over 1.3 billion people, so it is not a surprise that some people like gambling. Despite its enormous popularity, online gambling is not properly regulated in the country. Because there is no specific legislation to regulate online gambling, many organizations are profiting from this situation.

Traditional or conventional gambling is illegal in major parts of India, but there is no specific provision that makes online gambling illegal. As all current laws only forbid gambling in offline modes, the Indian government does not recognize online gambling as an offense.

Public Gambling Act (1867)

The "Public Gambling Act of 1867" is India's primary gambling-related piece of legislation. This act applies to all states. But due to the technological advances made in the last century (with the invention of the internet in the 1960s), this act is silent on this new form of gambling.

According to this act, any form of gambling is illegal in the country. This act made it illegal to operate or visit a place where gambling was done. Upon violating this law, a person is to be sentenced to up to 3 months in prison or pay a penalty of ₹20 When this law is broken, a person faces up to three months in prison or a fine of ₹200. But when it comes to online gambling, with internet services located in other countries, this law falls flat.

The List II Entry 34 of the Constitution of India-

“…gambling includes any activity or undertaking whose determination is controlled or influenced by chance or accident or any activity or undertaking with the consciousness of the risk of winning or losing (e.g. prize, competition, a wagering contract, etc.)…”

Therefore, any activity that involves risking money to win money may be considered gambling.

Section 12 of the Public Gambling Act of 1867 says that: “…Act not to apply to certain games. Nothing in the foregoing provisions of this Act shall be held to apply to any game of mere skills, wherever played...”

This is the most interesting part because this act does not have a precise definition for the term ‘gambling’. For instance, it cannot be said for sure if betting on a roll of dice would be treated the same way as betting on a game of cricket. Would they both be illegal at the same level? Or would cricket betting be given some leniency based on the justification that it requires skill and is not a game of chance?

Since there are many loopholes in this act, many offshore gambling organizations are using it to their benefit.

The Central Lotteries (Regulation) Act of 1988:

A lottery is a type of chance-based gambling, but the Indian government passed the Lotteries (Regulation) Act 1988 to govern lotteries in the country. Under this act, the maximum draw has been limited to one per week. This also gives rights to the state governments to regulate lotteries in their respective states (e.g. Sikkim, Punjab and Goa have legalized online lottery but Maharashtra, West Bengal, Meghalaya and Madhya Pradesh have legalized only land-based lottery systems)

Information Technology Act (2000):

The Information Technology Act of 2000 was amended to regulate cyber security. But it does not contain the word "gambling" or "betting," and it doesn’t term online gambling as illegal either. By giving instructions and notifying ISPs or MSPs, this act gives the Indian government the authority to block websites within 36 hours.