Online Gambling

Online Gambling

Online gambling refers to the act of placing bets or wagers on games of chance or skill through the internet or other digital platforms. It encompasses a wide range of activities, including casino games, sports betting, poker, and online lotteries. The convenience and accessibility of online gambling have contributed to its popularity among Indian users.Online gambling operates through websites or mobile applications that provide a platform for individuals to participate in various games. These platforms facilitate the process of creating accounts, depositing funds, selecting games, and placing bets. Online gambling sites utilize secure payment gateways to enable transactions and maintain player balances. The outcome of the games is determined by random number generators or live dealers, ensuring fairness and transparency

Differentiation between Skill and Chance: 

A substantial amount of competencies are used to play a game of skill. The outcome of a game of skill is determined by each player’s ability and talent. Players in a game of skill are cognizant of the rules and use a variety of tactics to play to win. Rummy, Carrom, and chess are a few examples of skill games.

On the contrary , a game of chance requires no talent, and the winner is determined by luck or any other random component.

Any game involving the act of placing money, wagering for money, or any other act that is equivalent is prohibited by the Public Gambling Act, 18572. However, the only exception to the aforementioned regulation that is permitted in India are games that require skill. 

The Supreme Court has defined skill games as “the games where success depends on substantial degree of skill or not gambling and despite there being an element of chance of a game is preponderantly a game of skill it would nevertheless be a game of mere skill”

The Supreme Court also recognized rummy as a game of skill. The Supreme Court opined that building up rummy takes substantial knowledge in retaining and discarding cards, and rummy requires an appropriate amount of skill as the fall of cards has to be tracked in memory. It is mostly and largely a game of skill.

However, a three-card game known as “flash” or “flush” was designated as a game of chance, falling under the ambit of gambling

In Varun Gumber v. Union Territory of Chandigarh the Punjab and Haryana High Court ruled that Dream11 and other digital fantasy sports games are not gambling since they require a significant amount of aptitude and skill.

The Bombay High Court ruled in Gurdeep Singh Sachar v. Union of India and Ors that a player’s ability to employ his skill through better knowledge, judgement, and attention determines whether he wins in the Dream11 game. Fantasy sports like Dream11 are therefore a game of skill.

Difference between Online Gambling and Gaming

Under the law, the distinction between gaming and gambling depends on the element of skill involved. If an online activity does not require skill, it will be considered gambling rather than gaming.Therefore, according to the law, gaming activities that are allowed require skill, while gambling activities rely on chance.

Public Gambling Act, 1867:At present, India has just one central law that governs gambling in all its forms. It’s called the Public Gambling Act, 1867, which is an old law, ill-equipped to handle the challenges of digital casinos, online gambling and gaming.

7th Schedule of the Constitution:Gambling in India is largely a state subject. This means states are expected to create their own laws to regulate gambling in their jurisdictions.

Laws in Various States:States like Delhi, Madhya Pradesh, and Uttar Pradesh have adopted the Public Gambling Act with some amendments.However, other regions like Goa, Sikkim, Daman, Meghalaya, and Nagaland, have drafted specific laws to regulate public gambling in their jurisdictions.

1. The Supreme Court’s ruling in R. Lakshmanan v State of Tamil Nadu(1996),concluded that horse racing betting was a skill game. Competitions in which victory depended on a significant degree of skill were not gambling, and despite the presence of some element of chance, if a game was preponderantly of skill, it would be a game of “mere skill.”

4. The Punjab and Haryana High Court reasoned that participating in fantasysports requires the same level of skill, judgment, and discretion. As a result, it was decided that the component of skill controlled the outcome of the fantasy game, and that fantasy games were of “mere skill” and weren’t eligible for consideration as  In addition, the Punjab and Haryana Court ruled that since fantasy sports were not gambling, the activity was also protected under the Constitution.
5. The legal status of the well-known game show Kaun Banega Crorepati (or”KBC”) came up in the case of Bimalendu De vs. Union of India & Ors (2001). 6KBC, a game show modelled after the format of the well-known British program “Who wants to be a Millionaire,” and Jackpot Jeeto were the targets of a Public Interest Litigation brought before the Calcutta High Court that argued that they constituted gambling and were therefore illegal under the law. The court determined that game shows did not fall under the definition of a “prize competition” after reviewing the terms of the West Bengal Gambling and Prize Competition Act, 1957 (which has a clause similar to the Prize Competitions Act).
6. In the case of Ramachandran v. The Circle Inspector of Police, the Hon. Kerala High Court determined that playing rummy for stakes would constitute a violation of the Kerala Gambling Act, 1960. The court quashed the review petition and noted that whether or not rummy was played for stakes, including online rummy, doing so would constitute a breach of the Act and would need to be determined on a case-by-case basis. The majority of Indian law recognizes gambling as a legitimate activity.