Is Sports Betting Legal in India?

Sports betting might be a new phenomenon in India, but it has been part of the sports culture in countries such as the USA, North America and the Europe. In USA, the betting culture is so engrained that the leagues like the NFL, MLB and the NBA, and the big-name players partners with betting organizations. It’s more or less the same in England the rest of Europe. However, in India, the question of its legality remains a topic of heated debate. That being said, sports betting has found a substantial audience in the country. But is the betting legal in India?

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Understanding Indian Betting Laws

If we compare Indian betting laws with other countries, they feel outdated, with different rules and regulations in some states. India’s betting organizations adheres to the Public Gambling Act of 1867. Violation of this law carries a penalty of a ₹200 fine or imprisonment for up to three months. But this law prohibits only the operation of public gambling houses or betting in establishments. It does not explicitly address online gambling or betting practices, which we see in the Indian market. In fact, most betting companies/organizations are operating under an umbrella of offering skill-based games. This has become a hot topic in the media that if the Indian government needs to take a relook at the policies around betting.

Difference Between Skill-Based Game and Chance

We are seeing a trend amongst companies who can be considered borderline betting organizations that they are offering skill-based games. One could argue that the games these companies offer are somewhat betting, but this is how they market their products – as a skill-based game. By doing this, Indian companies have found a way around the laws which clearly states that betting on games of skill is not considered gambling and is therefore legal. For example, rummy and fantasy sports platforms like Dream11 have been classified as games of skill.

On the other hand, betting on sports like predicting the outcome in a game of sports, such as cricket, or guessing what might happen in a match, let’s say in an over, is widely perceived as a game of chance, making it illegal under most state laws. But this is all about interpretation and it varies depending on the jurisdiction in a specific state.

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State-Specific Regulations on Sports Betting

India’s betting laws allows every state to regulate gambling within their territories. This is the reason why the rules around betting and skill-based games are different in most states. Though betting in India is not legal, skill-based gaming is, still, some states have banned the skill-based gaming altogether.

Sikkim: The state of Sikkim has its own rules and regulations around betting and skill-based games. The state even issues licenses for online sports betting platforms that are within the state.
Nagaland: Nagaland allows games based on online skill games but prohibits gambling.
Goa and Daman: Goa and Daman are amongst the few states who allow certain forms of gambling, such as casino gaming. However, sports betting remains largely unregulated.
Maharashtra: Maharashtra adheres to the law under the Bombay Prevention of Gambling Act, 1887, which makes sports betting illegal in the state.
Andhra Pradesh and Telangana: The states of Andhra Pradesh and Telangana made changes to their rules and regulations around betting, including skill games and online games.
Tamil Nadu: In April 2023, the government of Tamil Nadu introduced the TN Act. With this rule, the government implemented the Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Act, 2022 to ban online gambling and real-money online games of chance in the state of Tamil Nadu.

How International Sports Betting Companies work in India?

There’s no argument that the demand for betting in India is huge. But the rules around gambling has complicated the legal landscape around gambling in India. Though Public Gambling Act of 1867 does not explicitly address online betting, betting platforms such as Betway, 1xBet, and Bet365 attract significant Indian participation. Since there’s no direct route for these international betting companies to work in India, they work under a blanket, a kind of an umbrella where there’s no check to keep a tab on the betting activities. With no system to measure the activities, it results in significant loss in the revenue for Indian government.

Benefits of making betting legal in India

There are benefits of making betting legal in India.

Better Revenue Generation: Legalizing betting can create a better stream of revenue for Indian government. Since people somehow manages to play online with International betting companies like Bet365, a lot of money goes into the black market. But regulated betting can contribute significantly to the economy.
Transparency: With betting being legal, it can help in transparency and fairness, as rules can protect consumers from fraud and exploitation.
Curbing Illegal Activities: As betting become legal, it reduces illegal betting activities. Rules can also stop money laundering and other betting related crimes.
More Job Creation: A legalized betting industry creates employment opportunities in various sectors, including technology, customer service, and operations.

Why betting is still not legal in India?

Social Concerns: The biggest reason why betting is still not legal in India is the general perception. for ages, gambling has been seen as something that becomes addiction, which can result in financial ruin for individuals and families.
Ethical View: Many argue that gambling is immoral as it can form into an addiction. It is believed that people with gambling addiction can, at times, take drastic measures to indulge in betting. Also, gambling goes against the sanctity of sports.
Challenges: Implementing betting laws in a country as vast as India with so much diversity poses significant challenges. Another big challenge is that many states government are from different political party than the central government.

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How other countries regulate Betting?

United Kingdom: The UK Gambling Commission oversees all forms of gambling. Since betting is legal, it ensures fair practices and consumer protection.
United States: The United States of America lifted the ban on sports wagering in 2018. With the rule effectively in place, it helps government in keeping a tab on the money floating in the market. It also creates space for a thriving legal betting industry.
Australia: Online betting is legal in Australia, but licensing rules are different in various states.
Canada: In August 2021, Canadian government made changes to rules around betting and gambling in the country. With the introduction of bill C-218, users can participate in single-game sports betting.

Conclusion

The legality of sports betting in India remains a complex issue. While old laws like the Public Gambling Act of 1867 prohibit gambling, they fail to address the realities of modern online betting. There’s a big demand for betting and there’ a supply as well, albeit companies work under the blanket.

Legalizing sports betting could offer numerous benefits to Indian government, including revenue generation, more regulation and reduced criminal activities. Time has come for India to make the necessary changes to its laws.

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