Gambling & Gaming- An Indian legal perspective
In India, there is an absence of uniformity in gambling regulations within the states and a discussion concerning gambling and gaming legislation is long overdue. The main issue is that while the Supreme Court has established the primacy of the skills test, states are not universally implementing it when codifying the gambling and gaming law. Gambling and betting are regulated in India under entries 34 and 62 of the State List in the Seventh Schedule of the Constitution. This implies that each state can enact its own gaming, betting, and taxation legislation. Apart from Sikkim, Goa, Daman, and Diu, no other states have regulated gaming.
In India, we divide games into two categories: games of skill and games of chance. In the case of AP vs K. Satyanarayana (1968), the Court ruled that rummy was a game of skill. Nonetheless, the Court stated in its decision that if gambling or the gambling house profits from the game of rummy, it may be a crime under the laws. The Supreme Court also remarked that the three-card game, known by many names such as flush, brag, and so on, is a game of sheer chance. The Supreme Court cited this in two additional cases, M.J. Sivani v. State of Karnataka (1995) and Dr K.R. Lakshmanan versus State Of Tamil Nadu And Anr (1996).
Under order 36 rule(1) of the Civil Procedure Code (CPC), the Delhi district court found in the matter of G. network private limited vs Monica lakhanpal that a game of skills, whether played with stakes, does not constitute gambling. The stated judgement was rendered moot when parties attempted to withdraw the Revision petition during the final arguments.
In the case of Dominant Games Pvt. Ltd. v. State of Gujarat, it was determined that: Poker is a game of chance and hence constitutes gambling under the Gujarat Prohibition of Gambling Act 1887. Because poker evolved from the game of teen patti, which is a game of chance, wagering or betting is an inextricable aspect of poker, and so involves a stake.
Moving on from the facts mentioned above, if a game is deemed a game of chance in any state or is observed to be played with stakes, it may be considered gambling and unlawful under the gambling legislation. While in any on-ground or online gaming, it must be demonstrated that the game is a game of skill and is played without stakes; if this is demonstrated, the game may fall within the law’s exceptions.
The Indian gaming sector has enormous potential, albeit much of the market is now illegal. It is vital to forecast the industry’s income and employment potentials and prospects in India. Creating a gambling business in India necessitates a three-pronged strategy that includes reforming the existing gaming (lottery, horse racing) sector, legalizing the current illicit market (introducing new products), and implementing strict and overarching rules. Regulations in India can promote openness and fairness in the gaming industry while addressing the societal costs of gambling.
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