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The ‘Indian premiere league’ is here, caparisoned with the presence of industrialists, film stars, and politicians, but behind the glitz of the league there is something far less suave and remains a taboo: “betting”.
‘Betting’ in Indian society is often relegated to the ‘demi-monde’ but there exists a huge market in underbelly not restricted to the sport of cricket or IPL. As per the report by the Digital India Foundation deposits in illegal betting and gambling are exceeding 100 billion dollars per year, this figure sees a surge during the IPL given its popularity in our cricket crazy nation.
The illegal betting is a major problem, as without any regulatory oversight and rules criminal syndicates get involved, and use it as a way to launder the money ultimately leading to corruption in the sports in the form of fixing of the matches also observed by the United Nations Office on Drugs and Crime in its report that “illegal betting is not only a major driver of corruption in sport, but also a major channel for money-laundering”.
A Law Out of Time: The Need for Regulatory Reform
Even though the ‘Lodha Committee’, formed in the aftermath of the IPL, 2013 fixing scandal headed by Justice Lodha, recommended the legalization of sports betting, the legalization still eludes us but online betting still operates, in a grey area, as there is only one central act on gambling — the Public Gambling Act, 1867, Since the act does not pertain to online betting and gambling, and the domain of betting falling under the State List in the Indian Constitution, there are no central laws that explicitly ban the same.
However, fantasy leagues operate legally and have been recognized as a ‘game of skill’ by the Supreme Court in Shri Varun Gumber v. Union Territory of Chandigarh and Ors. (2017). Even betting on horse races was affirmed as a game of skill by the Supreme Court in another case, Dr. K.R. Lakshmanan v. State of T.N. (1996).
Although both the fantasy leagues and betting may have aspects where the outcome is based on sheer chance, but a substantial part also involves making predictions based on strategy, as recognized for the fantasy leagues, where users rely on statistics, past performances, weather conditions (if relevant), and pitch or ground reports. Since both activities involve informed decision-making rather than pure chance, legalizing and regulating sports betting, akin to fantasy leagues, would ensure transparency, consumer protection, and economic benefits while curbing illegal betting markets.
From Prohibition to Regulation: A Pragmatic Path Forward
Countries like the UK have long legalized sports betting. Post-legalization, it led to a well-regulated industry that contributed over £2.5 billion in taxes in 2022 and India should follow a similar path to benefit the economy. However, it comes under the State List and not within the Centre’s domain. Therefore, the best ‘bet’ is to legislate a model law that states may adopt to regulate sports betting.
The unregulated environment breeds serious issues such as money laundering, the generation of black money, loan sharking, and scams. Multiple incidents of suicides due to financial distress have been reported recently highlighting the dangers of unchecked betting practices.
A blanket ban on betting; which many may support as it being a socially acceptable solution to completely eradicate the problem may neither be viable nor effective. This has also been acknowledged by the Law Commission of India in its Report No. 276, which instead advocates for a regulatory approach which will ensure responsible gambling and prevent other perils such as the Underage betting, tackling funding through illegal channels, and the laundering of money via betting apps.
Tackling the unregulated betting environment is very necessary therefore regulations such as strict KYC norms for players, issuance of license to betting companies, capping on the transactions, and strict advertising guidelines for responsible betting and gambling. More importantly establishment of a central regulatory authority, akin to the UK Gambling Commission, to oversee licensing, compliance, and dispute resolution. When stakes are high, one can simply not let the chance triumph over the choice.
About the Author
Tushar Tyagi is a fourth-year B.A. LL.B. (Hons.) student at National Law University, Sonepat. His areas of interest include white-collar crimes, dispute resolution, and emerging intersections of law and technology and has a keen interest in legal policy reform.
These pieces are being published as they have been received – they have not been edited/fact-checked by ThePrint.