Online Gambling
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(ICI), the world's first online casino, started operating from August 18, 1995, with 18 different games.
In fact no business on the Internet earns more revenue than online gambling.
5 million online gamblers, almost 30 per cent are from Asia.
Anyone with a credit card can set up an offshore currency account with a gambling site, leaving them free to place bets on sporting events like Wimbledon, cricket, horse racing and Formula One, or join a virtual casino to play slot machines, roulette, blackjack, poker etc.
Bets can range from a nickel to thousands of dollars and according to whether you win or lose the amount is automatically adjusted to your account.
The law relating to online gambling in India needs to be understood within the country's socio-cultural context.
The Indian organized gambling industry is estimated to be worth around US$8 billion.
Though gambling is not illegal, it is a highly controlled and regulated activity.
Gambling features in List II of the Constitution of India, this implies that the state governments have the authority to enact laws in order to regulate gambling in the respective states.
Different states have different laws governing gambling in addition to the laws that have an application across the country.
Regulation of gambling
The courts have defined gambling as 'the payment of a price for a chance to win a prize'.
A game may be deemed to be gambling if the element of chance or luck predominates in deciding its outcome.
The right to undertake the business of gambling and lotteries is not considered as a fundamental right protected by the Constitution of India.
The following legislation is pertinent to gambling:
The Public Gaming Act, 1867
This Act provides punishment for public gambling and for keeping of a 'common gaming house'.
The penal legislations in respective states have been amended in accordance with their policy on gambling.
The Indian Contract Act, 1872 (ICA)
The ICA is a codified umbrella legislation that governs all commercial contracts in India.
The Act lays down; 'Agreements by way of wager are void, and no suit shall be brought for recovering anything alleged to be won on any wager or entrusted to any person to abide by the result of any game or other uncertain event on which any wager is made'.
While a wagering contract is not illegal, it cannot be enforced in a court of law.
Lotteries (Regulation) Act, 1998
This Act provides a framework for organizing lotteries in the country.
This Act also provides for the manner in which the lotteries are to be conducted and prescribes punishment in case of breach of its provision.
Several non-lottery playing states, like Gujarat and Uttar Pradesh, have prohibited the sale of other state-government lotteries under this Act.
It says that whoever keeps any office or place for the purpose of drawing any lottery not being a State lottery or a lottery authorised by the State Government, shall be punished with imprisonment of either description for a term which may extend to six months, or with fine, or with both.
Internet gambling
The law related to gambling is also applicable to online gambling.
As pointed out earlier, the online lottery is the most popular form of internet gambling in India.
In most cases, these marketers and distributors limit their online services to consumers who are residents of the states where a lottery is permissible.
There have been instances where one state has banned the lottery of other states, including online lotteries.
The state government, in this case, directed the closure of the terminals and kiosks selling the online lotteries.
The authorities have little to worry about, as Indian foreign exchange laws do not permit remittances outside India for gambling related activity, such as the purchase of lottery tickets, football pools and sweepstakes.
Conclusion
Online gambling remains a highly regulated sector with seemingly limited horizons to grow.
The pervasive authority with the government to block gambling related websites and the impossibility of enforcing gambling-related contracts further discourage the prospects for the industry.
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