India: Regulation of Sports Betting
By Subhrajit Chanda & Aishwarya, Jindal Global Law School, O.P. Jindal Global University, India.
In this Post, we will explore the complexities of sports betting regulations in India; the challenges posed by traditional laws; and the potential benefits of reform.
The lawfulness of sports betting in India is essentially regulated by the Public Gambling Act of 1867, which was passed into law during the colonial-era. This law makes gambling illegal, but, with the exception of horse racing, it also forbids managing or even being the head of a gambling house and it also prohibits visiting a gambling house. Nevertheless, this law does not state that online betting is illegal, which has risen globally, due to the rise of the Internet.
The Federal structure of India adds another layer of complexity to the betting landscape. In India, the gambling rules and regulations differ from state to state. For example, states like Maharashtra and Telangana have criticised almost all forms of betting, whilst states, like Goa and Sikkim, legitimise some clear forms of gambling, including online betting. The difference in these laws leads to complexity and confusion in the legal landscape of sports betting in India.
One of the major challenges in regulating sports betting in India is the rapid growth of online platforms with technological advancement. The Public Gaming Act does not explicitly ban online betting which creates a legal grey area. This lack of clarity leads to the emergence of illegal online platforms, which allow persons to practice online betting, despite their states stating that it is illegal. This makes it hard for the authorities to detect these unlawful betting websites.
Another pressing issue is match-fixing, a practice whereby the outcome of a game is manipulated. Match fixing threatens the integrity of sports. For instance, in 2013, the Indian Cricket Premier League spot-fixing scandal, brought forward the terrible outcome of the unlawful sports market that robs the government of revenue.
Additionally, the social impact of gambling cannot be ignored. Opponents of legalising sports betting often raise concerns about social issues, such as gambling addiction, irresponsible betting, and financial devastation. Legalising sports betting is feared because it may increase problem gambling, especially amongst disadvantaged groups in society. In the absence of appropriate safeguards, regulations, and education, the societal costs of gambling may exceed the financial gains.
On the other hand, there are also significant benefits from regulating sports betting in India.
Firstly, the most compelling argument in favour of regulating sports betting is the potential for job creation and significant revenue generation. In states like Goa and Sikkim, where certain forms of gambling are legal, the gambling industry has contributed to economic growth. If sports betting were to be regulated across more states in India, it could have a positive impact contributing to the economic growth of the country.
Secondly, regulating sports betting has the potential to generate substantial revenue for the government. A properly regulated betting market could bring in billions of rupees through taxes, which would benefit both the national and state governments. This revenue could be used to fund important public services, such as social welfare programmes and infrastructure improvements. Legalising sports betting in India will help the government to gain from the home market by lowering the amount of money that is lost to offshore bookmakers.
Thirdly, in addition to the economic benefits, regulating sports betting would help address the issue of illegal betting. By bringing the industry under government oversight, the government could ensure that betting activities are transparent and equitable by cracking down on unlawful operators. This would contribute to the preservation of the integrity of sports by reducing the prevalence of match-fixing and other unlawful activities that are associated with unregulated online platforms.
In the International arena, countries, such as the United Kingdom, provide significant insights for India. The United Kingdom gambling industry is tightly regulated, with comprehensive laws that ensure the integrity of both sports and betting markets. By adopting similar approaches, India could modernise its own legal framework and harness the economic potential of sports betting, whilst protecting the interests of both consumers and sports organisations.
In conclusion, a fair approach is necessary to address the complicated topic of sports betting regulation in India. Though substantial, the legal obstacles are not impossible to overcome. India can reduce the risks connected with illicit and unregulated markets, whilst embracing regulation and reaping the economic and social rewards of a well-run sports betting sector in the future. Careful policy making; collaboration between federal and state governments; and a dedication to establishing a transparent and safe betting environment are required!
Website: ‘www.jgu.edu.in’
