Abstract:
In today’s era, nothing is possible without the Internet. Even for the smallest things, we need the internet, but do we know what its pros and cons are? The Internet has led to a trend of online gambling; it has become a source of entertainment and is even rising at a global level. In India, gambling is governed by the PUBLIC GAMING ACT 1867, but it contains no provision for online gambling. Moreover, the state legislation on online gambling also lacks clarity. LUDO RUMMY, all these are sources of online and offline gambling. With the increase in online payment systems the online gambling has become more accessible. The youth are more attracted to online gambling because of the availability of the internet at hand. Online gambling can be easily controlled if we have the right regulations. There is a need for a specific law for online gambling, which would address the dangers of entertainment and self-execution choices. This research explored online gambling, its types, the need for new legislation in India to regulate online gambling, and the Supreme Court’s verdict on online gambling. It also examines the laws related to gaming in India, like the INFORMATION TECHNOLOGY ACT 2000. The suggestions in this research would help the government to reduce such kind of illegal activities because there is a need for collaborative efforts of the government, citizens, stakeholders, and industries, which will help to educate and protect citizens.
Keywords: online gambling, legislation, illegal, public gambling at 1867, Internet, India, stakeholders, online payment systems, information technology at 2000
Introduction:
India is a developing country with an increase in modernization; various sectors have been improved significantly. One of the major developments is in the technology sector, i.e., the Internet. With the introduction of the Internet, the lives of people have changed completely; even for the smallest things, people are dependent on the Internet. In today’s era, everything is possible with the help of the Internet, whether it is booking tickets, communication. The internet has caused online gambling. We all have heard about gambling, but what is online gambling? Online gambling is a type of crime that is done with the help of computers, smartphones, and tablets. It is generally conducted through a website. Online gambling simply attracts people by offering opportunities, and it is promoted by celebrities and social media influencers. Online gambling causes harm and disturbance in society because it is like an addiction if one loses he or she with a curiosity to try his luck play again and this circle continues until he or she loses all his money assets and at last it forces person to take debt from relatives, family, friends and sometime it even forces a person to do theft and many people commit suicide because of the burden of the debt hence it increases crime rates leading to a person forget his or her life. Online gambling is out of the reach of the police because there is no need to visit physical gambling centers; anyone can access these websites anywhere and at any time using their smartphones. The most alarming thing is that these websites misguide people in the form of games and entertainment, and they don’t even realize that they are getting hooked. Though some people argue that online gambling should be legalized as it is a source of income and entertainment, but without proper regulations and awareness, it can trap people of any age.
Research Methodology:
This research is normative legal research, which examines legal norms sourced from laws and regulations. The data in this research is secondary, which consists of research from legal textbooks, journals, newspapers, etc., including information obtained from websites. The articles and research papers were also used in this research, which were selected from reputable databases. Bare Acts and statutory materials were critically examined to assess the legal framework. The researcher further took the help of the Supreme Court and High Court decisions to clarify and understand the regulation and Prevention of online gambling.
Literature Review:
Lortrakul Suttichai, in his research paper, Enforcement of Gambling Laws, published at Research Gate, highlighted the challenges faced due to outdated Thai gambling laws, especially in regulating online gambling.
Nidhi Rathore, in her research paper on Online Gambling: The Legal Framework, published at AK Legal, highlighted the foundational law that doesn’t cover online gambling.
Online Gambling: Illegal Crime
Gambling is an act of betting where a person bets his/her money, assets. Gambling is considered illegal in India it has a bad impact on society. The Mahabharata was also the result of gambling. The main target of India is to become a global village, and for this, various advancements are being made, but these advancements have led to a trend of online gambling. The general meaning of online gambling is a type of gambling through the Internet, and to place bets, payment cards are used instead of money. In online gambling, there are various types of gambling, which are explained in detail below
Types of Online Gambling:
- RUMMY CIRCLE: It is one of the types of online gambling in which one has to download the “Cash Rummy APK” and create an account. Once an account is created, a game lobby is established where one can select a cash rummy game, such as Point Rummy or Pool Rummy. To play, one has to pay an entry fee, which depends on the game; after the game is started, and winner gets a cash prize.
- 10 CRIC: 10 CRIC is an online sports and casino platform that provides a wide range of cricket betting matches, like the IPL, T20 league.
- MPL: It allows users to participate in games ranging from casual to board and from sports to puzzles, either free or through paid competitions. It includes investors like RTP Global and Telstra Ventures etc.
- UNIBET: It was founded in 1997 in London. It offers play betting, casino, poker, bingo, and esports.
Impact of Online Gambling:
Online gambling is an addiction that people become used to without knowing its implications. The following are the impacts of online gambling
- FINANCIAL LOSS: Online gambling leads to financial loss because it is not certain who will win, and the person who loses suffers a huge financial loss. A person loses everything he has, like in the Mahabharata, the Pandavas lost everything they had, even their wife Draupadi. Because of the mistake of one person whole family suffers.
- ANXIETY AND DEPRESSION: Online gambling is available 24/7. Because of continuous attempts to win, one suffers from anxiety and depression, which can’t be predicted earlier like that of alcohol and drugs. Continuous loss of money leads to emotional instability, and it has a great impact on a person’s daily life, their relationships, and can even lead to suicidal thoughts.
- HEALTH ISSUES: One because of addicts suffer from health problems like poor digestion, high blood pressure, and headaches. The continuous screen timing affects the eyesight. A person ignores his family, and he loses all interest in work, too.
Whether gambling is online or offline, it causes addiction. Let us understand what online gambling addiction is and how it is caused.
Online Gambling Addiction:
Online gambling addiction means compulsory participation in Internet-based or online sources of gambling, ignoring its negative outcomes. The symptoms of addiction include mood swings, loss of money, sleeping disorders, and lying about the gambling activities. Online gamblers generally suffer more than other gamblers because of no physical barriers, secrecy, and isolation, as family members and friends do not easily notice
Why Is Online Gambling Addictive?
Online gambling is addictive because it is more convenient and easier. The gamblers can play anywhere and at any time. It becomes a part of their routine as compared to other sources of gambling like casinos, and it also requires less amount of effort. Online gambling platforms provide small wins, instant feedback, which increases the excitement and encourages one to play repeatedly. Moreover, there is no physical act of transferring the money.
Signs and Symptoms of Online Gambling:
- Obsession with gambling
- Mood swings
- Loss of money
- Sleeping disorder
- Cravings
Cure For Online Gambling Addiction:
- COGNITIVE BEHAVIOURAL THERAPY (CBT): Gamblers always think that “This is the last time I’m playing and this time I’ll win and recover all the amount of money that I have lost”. This therapy corrects their thoughts and helps them to solve their problem through other activities rather than gambling.
- MOTIVATING INTERVIEWING: This is for those who have understood that gambling is a bad habit, but they’re not sure whether they want to stop it or not. In this technique, there is a therapist who talks to people about their gambling habits and helps them to recognize how it is affecting their lives.
- MINDFULNESS AND RELAXATION TECHNIQUES: It includes meditation, deep breathing, body scans, mindful walking, and eating. All these techniques help relax your mind, allowing you to think before reacting rudely. These techniques help you to build a bright future by ignoring past mistakes and help to reduce stress healthily. If anyone thinks of gambling, then, by using this technique, one will take a deep breath, organize his or her thoughts, and then he will think whether it is right or wrong. Will it solve all problems? So, this technique helps to shift your focus towards better decision-making
- SUPPORT GROUPS: In a support group, there are regular meetings in which people with gambling habits come together and help each other. For Example, Gamblers Anonymous (GA). People listen to each other, and they learn from those who have overcome this problem. Basically, when they get support, the feeling of loneliness goes away.
Enforcement of Online Gambling Laws:
In India, there are various laws governing gambling, which are as follows:
- THE PUBLIC GAMBLING ACT 1867
- THE INFORMATION AND TECHNOLOGY ACT 2000
- INCOME TAX ACT 1961
Apart from this, there are various state legislatures also for the prevention of gambling, like
- THE HARYANA PREVENTION OF PUBLIC GAMBLING ACT 2025
- SIKKIM ONLINE GAMING (REGULATION) RULES OF 2009
- THE MEGHALAYA REGULATION OF GAMING ACT 2021
But there is no specific regulation or legislation for online gambling, though the INFORMATION TECHNOLOGY ACT 2000 includes online gambling, yet there is no specific provision in it for that. Moreover, there is no clarity in the laws like BNS 2023 and the COPYRIGHT ACT regarding online gambling. The government of India is continuously focusing on the introduction of laws for online gambling
Now, the question arises whether gambling is legal or not?
Gambling is a state subject; several states have legalized it, states like Maharashtra, Tamil Nadu have banned all forms of gambling, while states like Goa, Sikkim, Daman& Diu have partially legalized it. Various states have adopted different gambling laws. States like Uttar Pradesh, Madhya Pradesh, Punjab, and Haryana, and others have adopted the PUBLIC GAMBLING ACT OF 1867, whereas the other states have passed their online gambling regulation act. THE PUBLIC GAMBLING ACT OF 1867 was enacted when there was no existence of the Internet; hence, it has no provision regarding online gambling. It is a federal law on gambling.
So, it can be concluded that gambling is neither legal nor illegal because different states have different views regarding its legality. Yet, the legality of online gambling remains unclear because of no specific legislation for it. Still, certain steps are taken to restrict online gambling, like the RBI has directed banks and financial institutions to stop transactions related to online gambling.
International Framework for Online Gambling:
Online gambling can be accessed from anywhere in the world, which is why there is a need for an international framework for its regulation. Still, the situation is the same as that of the national level, i.e., at the national level, we have no unified laws for online gambling, and the international level mirrors the same. Still, certain international organizations, treaties, and conventions can be used to regulate online gambling. However, their main purpose is to regulate organized crime, corruption, and when it overlaps with online gambling, they are also used to regulate it.
UNITED NATIONS CONVENTION AGAINST TRANSNATIONAL ORGANIZED CRIME
When online gambling is linked with money laundering, it is treated as an organized crime, and then this convention could be used because this convention prevents international organized crime.
UNITED NATIONS CONVENTION AGAINST CORRUPTION
Online gaming leads to corruption and misuse of public funds, but with the help of this convention a strong action can be taken against those gamblers who do gambling for illegal financial gain. `
FINANCIAL ACTION TASK FORCE (FATF)
With the help of FATF, one can stop illegal money flow through gambling.
All these are some international agreements and conventions whose purpose is not to prevent online gambling, but they can be used to prevent it until we have a centralized international framework.
Comparative Analysis of Online Gambling from Other Countries of the World:
CANADA
There is no prohibition on Canadians from using gambling sites, but a company must obtain a license from the government if they are offering online gambling to Canadian citizens.
UNITED KINGDOM
In the UK, online gambling is 100 percent legal. Any website after obtaining a license from the UK Gambling Commission can offer gambling to people in the UK. Before 2014, a license obtained from an approved country was enough, but after 2014 license from the UK Gambling Commission is necessary.
EUROPE
Europe consists of a group of countries, and every country has different laws regarding gambling. For example, Germany and France have strict rules, while Malta and Estonia have relaxed laws.
SOUTH AMERICA
South American countries do not allow all forms of gambling; like in Brazil, only Horse Race Betting and Lotteries are legal.
AFRICA
Africa is one of the countries that has formulated specific laws to control and regulate gambling. It provides a platform for casinos that attracts most of the tourists.
Case Laws:
State of Andhra Pradesh vs V.K. Satyanarayam and others In this case Supreme Court upheld the High Court decision that RUMMY is a game of skill rather than a chance.
Dr. K.R. Lakshmanan vs State of Tamil Nadu In this case, the Supreme Court held that the games of skill are not covered by the definition of “gambling” under the Public Gambling Act 1867 because skill games require an amount of strategy and skill, and the outcome of such games is also dependent upon the skill of the player rather than luck.
Future of Online Gambling in India:
- VAGUE LAWS: The laws and regulations regarding gambling in India are unclear; they do not specify whether online gambling is legal or not. There is no centralized law for online gambling, so courts and states have interpreted it in different ways.
- UNCLEAR JUDGMENT: The Supreme Court’s judgment that games of skill are not gambling and Rummy is a game of skill, not a game of chance, has created a lot of confusion because one can’t decide what constitutes a game of skill and a game of chance.
- OPPOSING VIEWS: No one can have similar thoughts. Certain people in our country suggest that gambling should be legalized, as it will bring in tax money for the government and create new jobs, while some people oppose it because they think that gambling has only negative consequences, like addiction and financial trouble.
- LAW COMMISSIONS REPORT: Law Commission of India in 2018 made it clear that gambling and sports betting should be made legal, and some rules should be created for it, because:
- Banning gambling won’t work
- By regulating rules, cheating, fraud, and illegal money could be stopped
- Rules regarding licensing would ensure safety
All these are just recommendations; the government has not made them into law yet.
Suggestions:
- COLLABORATIONS WITH ISP (INTERNET SERVICE PROVIDERS): Internet service providers should cooperate with the government and police by sharing with them information about suspicious online gambling sites, and they should be encouraged to install anti-gambling software. They should be given the power by the government agencies to block the illegal gambling websites.
- ENACTMENT OF LEGISLATION: A national legislation should be passed by the Indian government to deal with online gambling, and the law should also focus on licensing and player protection, and strict liabilities should be defined for those who violate the law.
- CREATION OF PUBLIC AWARENESS: The government should create public awareness through campaigns and inform people about the risks associated with online gambling. Special measures should be made for the prevention of children and teenagers because they’re more likely to become addicted to it. Social media platforms can also collaborate in the campaigns.
- DIFFERENTIATION OF SKILL-BASED GAMES VS GAMBLING: Though the Supreme Court has ruled that the games of skill are not considered gambling, there is a need for clarification on what constitutes a game of skill. This clarity could help us understand what constitutes lawful gaming and what constitutes unlawful gaming.
Conclusion:
From the research, it can be concluded that online gambling is increasing rapidly, and it has a very bad impact on our nation. The reason behind this is addiction and peer pressure. People become gamblers because of the circumstances and temptations of life. That’s why there is a need for centralized legislation for the prevention of gambling, because the present legislation is outdated. Moreover, a lot of problems are being created by the Supreme Court decision that rummy circle is a game of skill, so there must be a provision in the centralized law that defines what constitutes a game of skill. The government should focus on the development of youth rather than its profit. The government should encourage youth not to engage in such kind of activities, and strict punishment must be provided to those who are involved in such kind of activities. Along with this, there is a need for strong state legislation because gambling, being a state subject, is legalized in some areas, and in certain areas it is still illegal. The counseling program is also essential because punishment is not the solution to all problems.
BHOOMI TANEJA
GEETA INSTITUTE OF LAW