1

CHAPTERISATION

1. Cover Page
2. Chapter- 1 – Introduction, History and objectives.
Chapter- 2- Conceptions and legal framework.
Chapter -3- Offline gambling and Online Gambling.
Chapter- 4- offline, online and other games internationally.
Chapter-5-gambling and its relativity in different Acts.
3. Conclusion and Recommendations
4. Case Analysis

2
 Review of Literature

- Nikhila
Online Gambling and Betting on Cricket matches Unbated, 2 ILJ 3 (2007)
-Salman Wazis
This article different gaming services. It also explains the betting and bookings internationally.
The internet has become the gaming agencies. The author also deals with millions transactions.
The author also explains important provisions of public gambling act, 1867 and international
case laws in explaining common gaming house, game of skill etc.

It also explains need for legalizing cricket betting in India and circulation of money flow

A ‘New’ Game of Chance, 13 J. Crim L. 219 (1949)

The article deals with the then emerging trend in convicting under public gambling. The cases
are analysed based on the game of chance or game of skill. This article is explains about
common gaming house and need for identifying and prohibits the gambling under common
gambling house. Explanation for different cases is analysed. The prominent decisions given for
prohibition of common gaming houses.

A Game of Skill or Chance? The Legality of Daily Fantasy Sports in Canada and the US

The author explains about DFS (Daily Fantasy Sports). He explains about their addiction in
daily life and their increasing addiction. He also explains the reasons for legalising those games.
He analyses about on legalising gambling in U. S. and Canada. He also explains it through
considering states in U.S. and Canada. He analyses current situation and expected future
outcome in those states. This article gives deep analysis of gambling in these countries. It also
differentiated game of skill and game of chance. Game of chance plays an important role in
differentiating games and regularizing laws based on it.

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 CHAPTER 1 : INTRODUCTION, HISTORY AND REVIEW OF LITERATURE

Introduction

Gambling is a game imbibed in blood of Indians since ages. From the very beginning of
civilization, people started to inculcate ‘games of chance’ with their wealth, property, etc., as
security for winning the game.

Gambling is wide spread it even extended to online gambling where online gambling and offline
gambling individually gained a lot of popularity. Gambling is mentioned in Schedule VII list II
Section 34 of the Indian Constitution. As it is mentioned in state list, States have authority in
their respective jurisdictions to amendment, repeal or regulate the act. In U.S., U.K. gambling
had a different perspective.

According to FICCI, betting market in India is about Rs 300,000 crore rupees. 1 This count may
be increase in next few years. There is an urgent need for legalizing the betting and gambling for
revenue regularization.

History Of Gambling

Gambling is one of the amusements since ages. Remains of dice and gambling boards were
traced at Harappan excavations proving its existence since 1000 BC. 2 Chathuranga, a game of
dice is popularised in Mahabharata in 400 BC. Playing dice game, king Yuddhirshta lost his
kingdom, including his brothers and wife.3 The Rig Veda contains a hymn called 'Gambler's
Lament' showing its popularity during the early Indo-Aryan society. 4 . In Manusmriti, Verse 221,
Gambling has been strictly forbidden in entirety for its potential to destroy a Kingdom. It also
provided for punishment for anyone who either plays or provides an opportunity for it.

1
Regulating Sports Betting in India- A vice to be tamed? FICCI http://ficci.in/SEdocument/20208/report-betting-
conference.pdf
2
Jan McMillen, Understanding Gambling- History, Concept and Theories, http://books.google.co.in/books?
id=iekF9X3OwwMC&pg=PA34&dq=
gambling+history+in+india&hl=en&sa=X&ei=PwlOVInHCJPf8AXTtIFI&ved=0CCEQ6AEwAQ#v=onepage&q=g
ambling% 20history%20in%20india&f=false
3
Chaturvedi Badrinath, The Mahabharata-An Inquiry in the Human Condition 142 (2006).
4
Judith E. Walsh, A Brief History of India, , http://books.google.co.in/books?
id=iekF9X3OwwMC&pg=PA34&dq=gambling+
history+in+india&hl=en&sa=X&ei=PwlOVInHCJPf8AXTtIFI&ved=0CCEQ6AEwAQ#v=onepage&q=gambling
%20 history%20in%20india&f=false

4
Punishment could either extend to getting banished from the kingdom or corporal subjugation. 5
But Kautilya during Mauryan empire had taxed gambling.

The games have been widely increased since 19 th century. The gambling laws are framed to curb
the frequency of gambling houses. The mode of playing games is changed. The games have been
divided into online and offline gaming.

OBJECTIVE BEHIND THE ACT

These vague parameters of controlling gambling led to the passing of the Public Gambling Act in
the year 1867. The initial purpose of this Act was to repress public gambling in large towns
situated in the territories respectively under their governments, without giving rise to oppression
and other malpractices on the part of the police.6

In short, the objectives of the Act are:

 To prevent gambling either in a public place or thoroughfare or in a common gaming
house, and
 To prevent the keeping of common gaming houses.

CHAPTER 2: CONCEPTION AND LEGAL FREAMEWORK

Gambling and gaming

Black's Law Dictionary defines gambling or gaming as 'the act of risking something of value for
a chance to win a prize', while a wager is defined as 'money or other consideration risked to an
uncertain activity.’7

“Gambling” as per most Gambling Legislations is understood to mean “the act of wagering or
betting” for money or money’s worth.

5
Mandagadde Rama Jois, Legal and Constitutional History of India: Ancient legal, judicial, and Constitutional
System http://books.google.co.in/books?id=V552bAz5xFAC&pg=
PA219&lpg=PA219&dq=constitutional+provisions+for+gambling+india&source=bl&ots=G5kwdZupr_&sig=
OxxQKV6Dr7VQsDIvNEatiDHONQo&hl=en&
sa=X&ei=BRxOVIAGozn8AWfGw&ved=0CCMQ6AEwATgK#v=onepage&q= constitutional%20provisions%
20for%20gambling%20india&f=false
6
A.P. MATHUR, Commentaries on Gambling Acts in India (Eastern Book Company Law Publishers &
Booksellers,Delhi, 1967 1).
7
BLACK'S LAW DICTIONARY 701 ( ed. 2004).

5
Gaming is an inclusive definition which includes a game of chance and skill combined or a
pretended game of chance or of chance and skill combined.8 Gaming is the act or practice of
gambling on a game of chance. It is staking on chance where chance is the controlling factor. 9
Gaming is to play any game whether of skill or chance for money or money’s worth and the act
is not less gaming because the game played is not itself unlawful and whether it involved or did
not involve skill.

Supreme Court in PIL petition, in the case of Bimalendu De and etc v. Union of India &
others10,Gambling- Making a bet, Such occurs when there is a chance for profit if a player is
skilful and lucky. A play for value against an uncertain event in hope of gaining something in
value. It involves not only chance, but a hope of gaining something beyond the amount played.
Gambling consists of a consideration, an element of chance, and a reward the element of
gambling are payment of a price for a chance to win a prize.11

Game of skill or Game of chance

The test of legality of gambling vis-a-vis nature of sports is dependent upon the dominance of the
element of skill/chance with regard to a recognized sport.12

Gambling in a nutshell is payment of a price for a chance to win a prize. Games may be of
chance or skill or of skill and chance combined. A game of chance is determined entirely or in
part by lot or mere luck. A game of skill, on the other hand- although the element of chance
necessarily cannot be eliminated- is one in which success depends principally upon the superior
knowledge, training, attention, experience and adroitness of the player. There are few games, if
any, which consist purely of chance of skill is one in which the element of chance predominates
over the element of skill and a game of skill is one in which the element of skill, and a game of
skill is one in which the element of skill predominates over the element of chance. It is the
dominant element- “skill” or “chance”- which determines the character of the game.13

8
M.J. Sivani v. State of Karnataka, (1995) 6 SCC 289.
9
K.R. Lakshamanan v. State of T.N., (1996) 2 SCC 226.
10
2000 SCC OnLine Cal 415.
11
BLACK’S LAW DICTIONARY 679 (6th ed. 1990).
12
Dr. K. R Lakshmanan v. State of T.N. and another, (1996) 2 SCC 226.
13
Id.

6
The Supreme Court of India has interpreted the words “mere skill” to include games which are
preponderantly of skill and have laid down that (i) the competitions where success depends on
substantial degree of skill will not fall into category of ‘gambling’; and (ii) despite there being an
element of chance, if a game is preponderantly a game of skill, it would nevertheless be game of
“mere skill”14 Whether a game is of chance or skill is a question of fact to be decided on the facts
and circumstances of each case.15

Common Gaming house

Gaming house would mean any house, room, tent etc. whether enclosed or open or any place
whatsoever in which the instruments of gaming are kept or used for profits or gain by the
person occupying, using or keeping such house, room, tent etc. whether by way of charge or
otherwise.

A common gaming house is a place or public place kept or used for playing therein any game of
chance, or any mixed game of chance and skill , in which the organiser keeps one or more of the
players. It is also the place where the game is played, the chances of which are not favorable
alike to all the players.16

Though some fee is charged for the games of billiards, ping-pong, tennis, etc., an extra charge
for playing cards (unless it is extravagant) would not show that the club was making a profit or
gain so as to render the club into a common gambling house.17

Instruments of Gaming

Instrument of gaming means ‘any article used or intended to be used as a subject or means of
gaming, any document used or intended to be used as a register or record or evidence of any
gaming, the proceeds of any gaming, and any winnings or prizes in money or otherwise
distributed or intended to be distributed in respect to any gaming.18

14
State of Bombay v. R.M.D. Chamarbaugwala, AIR 1957 SC 699.
15
Manoraranjithan Manamyil Mandran v. State of Tamil Nadu, AIR 2005 Mad 261.
16
M.J. Sivani v. State of Karnataka, (1995) 6 SCC 289.
17
State of A.P. v. K. Satyanarayana, (1968) 2 SCR 387.
18
§ 4, The Public Gambling Act, 1867.

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Search and Seizure

Section 5 gives power to search a common gambling house.

If any individual owns, occupies or uses a place for gambling, then the police have every
authority to search the premises, seize any adverse materials or gambling instruments and even
arrest all occupants participating in such gambling activities. The only respite for these
individuals would be if the games played are of skill and not of chance, then as per Section 12 of
the Public Gambling Act, games of skills are specifically excluded from criminal prosecution.

Betting and Gambling

The difference between depends upon the nature of the events on which the bet is made. If the
event is brought about solely for the being betted about, betting on it is gaming, otherwise not.19

Lottery and Gambling

Under the Constitution of India, the central legislature has the power to enact laws with respect
to lotteries. Lotteries have been expressly excluded from the purview of the Gambling
Legislations and are governed by the central law -Lotteries (Regulation) Act, 1998 under which
the Lottery (Regulation) Rules 2010 (“Central Lottery Laws”) and state specific rules have been
framed (“Lottery Laws”). The Central Lottery Laws allow the state governments to organize,
conduct or promote a lottery, subject to the conditions specified in the Central Lotteries Laws.
The state governments may appoint an individual or a corporate as a “distributor or selling
agent” through an agreement to market and sell lotteries on behalf of the organizing State. While
some states such as Punjab, have gone to the extent of specifically providing for and approving
online lottery systems to be governed by the state Lottery Laws, lottery is bannd in certain states
in India, for example Madhya Pradesh.

Non-active participants

19
Hari Singh v. Jadu Nandon Singh, 1904 SCC OnLine Cal 27.

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“ 4. Penalty for being found in gaming-house.” Section 4 of Public Gambling act, 1867 gives
penalty to a person for being found in common- gaming house whether being playing or
otherwise. Penalty is hundred rupees fine or imprisonment.

“Any person found in any common gaming-house during any gaming or playing therein shall be
presumed, until the contrary be proved, to have been there for the purpose of gaming.”

The burden of proof lies on accused to plead innocence.

Review of literature
- K V S Madhumita
1. Jay Sayta, Legality of Poker and other Games of Skill: A Critical Analysis of India's
Gaming Laws, 5 NUJS L. Rev. 93 (2012).
The author has focused on history and evolution of poker, its international legality and its legal
perspective in India. The paper also discusses about the West Bengal Prize Competition Act and
International statistics analysis.

2. Ali K. Qtaishat; Ashish Kumar, Sports Betting: Surveying the Legality Issues and Current
Developments, 20 J.L. Pol'y & Globalization 40 (2013).
This paper emphasis on sport events and betting in US, UK, Australia and India. it has discussed
all the relevant laws in US and UK that talk about sport events and betting. In Indian context, the
author focus on horse racing through case analysis.
3. Rohani Mahyera, Saving Cricket: A Proposal for the Legalization of Gambling in India to
Regulate Corrupt Betting Practices in Cricket, 26 Emory Int'l L. Rev. 365 (2012).
Gambling is currently banned in India. However, given the Indian matchfixing scandals that
have taken place, the ban on betting has not been an effective deterrent to corrupt gambling.
Although the nature of cricket is such that it typically requires the involvement of more than one
person to sway the match, it is nonetheless highly susceptible to corruption. Bookmakers take
bets on every ball and every over or inning in the game.

CHAPTER 3: Offline Gambling and online gambling

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The public Gambling Act, 1867 punishes only offline gambling and the law related to online
gambling is still ambiguous in India. The scope of the Public gambling Act is on cards 20, setting
birds and animal to fight in public street21 and mainly gambling for stakes.22
Below are some listed offline games which were subjected to legal framework lot of times.
Types of game of skill
Types of game of skill are divided into three subtopics each, i.e, definition, game of skill or game
of chance and state amendments.
Poker
Definition
Poker is a family of card games that combines gambling, strategy, and skill. All poker variants
involve betting as an intrinsic part of play, and determine the winner of each hand according to
the combinations of players' cards, at least some of which remain hidden until the end of the
hand.23
Game of skill or Game of chance
Even though poker is currently permitted only in casinos which means that it can be equated to
gambling, academicians and poker players in India and across the world argue that poker is a
mind sport involving the study of statistics, probability, game theory and psychology, which
makes it a 'game of skill' akin to chess or bridge 24. In the absence of any direct decision of the
Supreme Court or any of the High Court on the game of poker, any analysis of the legality of
poker for any state in India would have to be given in light of the objects of different state acts,
international case laws and statistical analysis concerning the game of poker 25. But,

20
Sec. 6 of The Public Gambling Act, 1867:
Finding cards, etc., in suspected houses, to be evidence that such houses are common
gaming houses.
21
Sec. 13 of The Public Gambling Act, 1867:
Gaming and setting birds and animals to fight in public streets.-A police-officer may
apprehend without warrant-any person found playing for money or other valuable thing with
cards, dice, counters or other instruments or gaming, used in playing any game not being a
game of mere skill in any public street, place or thoroughfare situated within the limits
aforesaid
22
Sec.9 of The Public Gabling Act, 1867:
Proof of playing for stakes unnecessary.-It shall not be necessary, in order to convict any
person of keeping a common gaming house, or of being concerned in the management of any common gaming
house, to prove that any person found playing at any game was playing for any money, wager or stake.
23
https://en.wikipedia.org/wiki/Poker.
24
The Economist, At far with Luck, July 8, 2010, available at http://www.economist.com/ node/16507710
25
Jay Sayta, Legality of Poker and other Games of Skill: A Critical Analysis of India's Gaming Laws, 5 NUJS L.
Rev. 93 (2012).

10
In Dominance Games Pvt. Ltd. & Others v. State of Gujarat 26 (pending before supreme
court),  has ruled that poker is a game of chance and amounts to gambling under the Gujarat
Prevention of Gambling Act, 1887.

State amendments
Poker was first introduced in licensed casinos in Goa in 2000, which is four years after Goa's
legislature permitted the opening of casinos.27
The West Bengal Gambling and Prize Competitions Act, 1957 prohibits almost all forms of
gaming and betting, Section 2 (1) (b)  of the Act has excluded ‘skill-based’ card games like
poker, bridge, rummy and nap. This provision is subjected to Section 1228 of the same Act which
states that if any game of skill had to be played publicly then permission has to be taken from
commissioner of police.
Horse racing
Definition
Horse racing involves a somewhat boggling collection of colorful phrases and terms for putting
your money down on a horse and hoping to come away with a lot more money when the horse
wins. Racing can also provide a comparatively gentle way of wagering - you don't have to bet
that the horse will come in first. Depending on the type of bet you place, you can sometimes win
money if it finishes second or even third.
Game of skill or Game of chance
Legality of horse racing as game of skill or game of chance was questioned in K.R Lakshmanan
v. State Of Tamil Nadu case29, The questions posed before the Supreme Court of India the case
were fourfold:
(1) What is gambling?
(2) What is the meaning of the expression "mere skill" in terms of Section 49-A of the Madras
City Police Act of 1888 and Section 11 of the Madras Gaming Act of 1930?
(3) Whether running a horse-race by the club is a game of chance or mere skill? and

26
pending case https://glaws.in/2017/12/06/analysis-and-implications-of-the-gujarat-hc-order-on-poker-and-skill-
games-played-for-stakes-read-copy-of-the-judgment/
27
Arindam Mukherjee, Grinders in the ATA (June 18, 2011) http://www.openthemagazine. com/article/living/the-
grinders-and-the-atms
28
Section 12 of The West Bengal Gambling and Prize Competitions Act, 1957
29
(1996) 2 SCC 226.

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(4) Whether wagering or betting on horse-races is "gaming" defined by the Police Act and the
Gaming Act?
Horse-racing is an organized institution. The horses which participate in the races are a class by
themselves. They have a history of their own. The breed of the horse is an important factor. The
experts select the horses who are to be inducted into the racing profession. The selected horses
are given extensive training by professional trainers. Breed, upbringing, training and the past
record of the race- horses are prominently published and circulated for the benefit of prospective
bettors. Jockeys are experts in horse riding and are extensively trained in various aspects of
horse-racing. They are supposed to know the horse they are riding and the turf on which the
horse is to run.30

State amendments

The states of Andhra Pradesh, Assam, Delhi, Karnataka, Meghalaya, Tamil Nadu, Maharashtra
and West Bengal have created specific exceptions in their statues allowing betting on horse races
in a specified format on the day of the horse-race with licensed bookmakers in the format and
rules that may be prescribed.31

Rummy

Definition
Rummy was defined in Merriam- Webster as follows "Any of several card games for two
or more players in which each player tries to assemble groups of three or more cards of
the same rank or of consecutive sequence in the same suit and to be the first to meld them
all". 32

Game of skill or Game of chance

Rummy is a game of skills in the case of State of AP v. K Satyanarayana33 , the court held that
"The game of Rummy is not a game entirely of chance like the 'three-card' game mentioned in
the Madras case to which we were referred. The 'three card' game which goes under different
30
Id.
31
https://glaws.in/2013/05/12/a-primer-on-horse-racing-laws-in-india/
32
Available at: https://www.merriam-webster.com/dictionary/rummy
33
 1968 SCR (2) 387.

12
names such as 'flush', 'brag' etc. is a game of pure chance. Rummy, on the other hand, requires
certain amount of skill because the fall of the cards has to be memorized and the building up of
Rummy requires considerable skill in holding and discarding cards. We cannot, therefore, say
that the game of Rummy is a game of entire chance. It is mainly and preponderantly a game of
skill."

State Amendments

Rummy is considered to be game of skill in AP, but if any premises is found raising stakes then
they will be booked of an offence under Andhra Pradesh Gaming Act, 1974.

Cricket betting
Some of India's gaming laws have not been updated since the 1800's and despite having a Anti-
gambling law there is no landmark case on gambling. Illegal betting on cricket runs into billions
of dollars as seen latest in IPL scams.
Game of skill or game of chance
Patial house court ruled in 2015 the sport of cricket requires strategic masterminds and requires
hand- eye coordination for throwing, catching and hitting. Game of cricket , therefore, is a game
of skill which is exempted under Section 12 of the Public Gabling Act, 1867, from the definition
of gambling.
State amendments
Betting in Andhra Pradesh is not permitted according to Andhra Pradesh gaming Act, 1974. In
Gujarat, It was recommended in one of the report headed by Justice M B Shah, former judge of
Supreme Court of India, to amend Section 5 of Gujarat Prevention of Gambling Act, 1887
which prohibits cricket betting. The report recommended to make stringent laws regarding the
issue of cricket betting by making deterrent amendments. In Maharastra, cricket betting is illegal.
Online Gambling: Position In India

There are no specific and dedicated online gaming and gambling laws in India. This has not
deterred various individuals and companies from exploring the online gaming industry of India.
This has also resulted in increased numbers of arrests and prosecutions of various individuals and
companies in India.

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Online Gambling and Prevention of Money Laundering Act, 2002
Gambling and betting is a business that is traditionally associated with money laundering, tax
evasion and use of illicit funds. In India, the Goa government amended the casino license
conditions and issued guidelines to casinos which included collection of Know Your Customer
documents, reporting of transactions above Rs. 10 lakhs to the Financial Intelligence Unit and
maintaining special checks on Politically Exposed Persons .34 The Supreme Court in
the Mahalakshmi Cultural Association35 case wanted the Central government to give information
about implications for online rummy companies under the Prevention of Money Laundering Act,
2002 .
Online Gambling And Information Technology Laws

The Information Technology Act, 2000 and Information Technology (Intermediate Guidelines)
Rules 2011 require an intermediary (i.e., any person who, on behalf of another person, receives,
stores or transmits that message or provides any service with respect to that message- typically,
an internet service provider) to publish rules and regulations informing users of computer
resources not to host display, publish, transmit, update or share any information that relates to
gambling. Notwithstanding the foregoing, gaming advertisements are prevalent online. 36Sections
67, 75 85 of Information Technology Act, 2000 states publishing or transmitting of prurient
interest, offence committed outside the nationality, offences committed by companies,
respectively, and these are sections can be invoked for offence of gambling.

Literature Review:

-Aakash Sharma

1.Emlin McClain. Treatise on the Criminal Law as Now Administered in the United States
(1897).
This article emphasis on the definition of gambling and types of gambling in United States. The
article also focuses on the legislations on pool selling and keeping of gaming house in United
States.

34
https://glaws.in/2015/06/28/understanding-gaming-companies-obligations-under-the-prevention-of-money-
laundering-act/
35
W.A.No.2287 of 2011
36
Gambling 2018, International Comparative Legal Guides, https://iclg.com/practice-areas/gambling-laws-and-
regulations/india (Dec. 6, 2017).

14
2. Beau Thompson, Internet Gambling, 1 N.C. J.L. & Tech. 81 (2001)

The current statutory schemes relied upon by the courts are outdated and are of only limited
utility. Lawmakers will ultimately have to make a decision about the regulation of Internet
gambling, which will involve a policy determination about what the government deems is more
important between two general interests: the interest in protecting the community from the social
harms that result from permitting gambling and the economic benefits received from gambling.
This is a difficult decision, with a number of collateral issues. The critical question that must be
decided, however, is whose decision is it to make- the federal government or the individual state
governments? Once this determination is made, the law in the area of Internet gambling will
become very clear. But, as long as the federal government and state governments are at odds
over who is in control, the law will remain in a state offlux.

3. Mattia V. Corsiglia Murawski, The Online Gambling Wager: Domestic and

International Implications of the Unlawful Internet Gambling Enforcement Act of 2006, 48
Santa Clara L. Rev. 441 (2008)

The UIGEA is a disappointing piece of legislation that highlights multiple failures in U.S.
Internet gambling law and lends itself to a more practical solution of licensing and regulating.
Unlike the UIGEA, licensing and regulating Internet gambling will stop the flow of capital to
foreign countries and will redirect those transactions to the United States. Licensing and
regulation will also give the government the necessary oversight to deal with the social ills
associated with gambling. In addition, by failing to treat foreign and domestic operators
differently, a new law will avoid international trade conflict. Only by taking these measures will
the United States be able to redirect the capital earned from Internet gambling domestically,
thereby allowing internet gambling to be harnessed for the common good.

CHAPTER 4 :Offline, online and other games

Poker
In England, courts have held that poker is not a game of skill as per the Gaming Act., 1845 and
subsequently the Gaming Act, 1968.37 With the passage of the Gambling Act, 2005, which is a
comprehensive legislation applicable across the UK (except Northern Ireland) covering all forms
37
Joseph M. Kelly, Zeeshan Dhar & Thibault Verbeist, Is it a Game of Skill or Chance and Legally Does it Matter,
11 GAMING LAW REVIEW 190 (2007).

15
and aspects of wagering and gaming, games which have a superlative and substantial degree of
skill have also been included under the definition of 'games of chance ', 38 which may not be
played and organized without the prior permission of the Gambling Commission.
Thus poker may now be considered to be a wagering activity and can be covered under the
definition of gambling due to which, poker rooms cannot be started without the permission and
license from the UK Gambling Commission.39 It is, however, interesting to note that certain
courts in the US40 have held poker to be a game of skill, thereby permitting games of poker to be
conducted even outside casinos.
Horse Racing
In US Many forms of betting are, indeed, punishable as gaming 41. Horse-racing for money is
generally within the statute as to gaming42; but to offer a premium to the owner of the winning
horse in a race is not the staking of a bet, for there is no hazarding of money on the result of the
contest;43 neither is the racing of horses for a prize or premium offered by a third person to be
deemed gambling.44 The general prohibition of betting on horse-races applies to all horse-races
no matter where run,45 and is therefore applicable to a race to be run out of the state. 46 In some
states betting or pool selling with reference to races run on a licensed track are excepted from the
statutory prohibition.47 In many states, however, all pooling schemes are forbidden by statute.48
Betting on horseracing is regulated by Betting, Gaming and Lotteries Act 1963, in UK. Under
the Act, the Horserace Betting Levy Board (HBLB) collects the Levy from bookmakers and Bet
Fred. There has been many Levy Regulations since the betting is done on horseracing. The latest
draft Horserace Betting Levy Regulations 2017 has been approved by the Parliament in UK. The
Regulations extend the Levy to all gambling operators offering bets on horseracing in Great
Britain49.

38
The Gambling Act, 2005, §6, available at http:/Aww.legislation.gov.uk/ukpga/2005/19/pdfs/ ukpga 20050019
en.pdf.
39
Id.
40
Gallatin County v. D & R Music & Vending, Inc., 208 Mont. 138 (1984).
41
C. v. Shelton,. 8 Grat. 592.
42
Cheesum v. S., 8 Blackf. 332.
43
Delier v. Plymouth Co. Ag'l Soc'y, 57 Ia. 481.
44
Harris v. White, 81 N. Y. 532.
45
S. v. Lovell, 39 N. J. 463.
46
Stearns v. S., 81 Md. 341.
47
S. v. Posey, 1 Humph. 384.
48
C. v. Simonds, 79 Ky. 618.
49
DCMS, Modernizing the Horserace Betting Levy - A consultation on reform or replacement.

16
Rummy
Rummy is one of the oldest card games that is played across the world. It is a card-matching
game in which cards of same denominations or suit are used to form sequences and sets. This
legally declared ‘skill game’ is played by people of all class and age, and is played from home
gatherings to club parties.50

Other Games

In the case of Regina v. Kelly 51, held that chess, scrabble would not come under definition of
games of chance. In the case of Mahalakshmi cultural association , providing facilities for table
tennis, carroms, chess, carts, badminton , tennis, volleyball would not amount to gambling or
aiding for gambling.

Review of Literature

- Abhishek

1. Mr. Pisgahbuan Gonmei, IOSR Journal Of Humanities And Social Science (IOSR-
JHSS) Volume 21, Issue 1, Ver. IV (Jan. 2016) PP 32-57.

This study has shown that gambling is widespread in Manipur. As gambling has become more
available, gamblers have become more diverse. There is much to be gained from understanding
of gendered gambling behavior, in the context of a study of gambling participation and attitudes
rather than studying problem gambling. This study has also shown that adolescents gambling
participation is significantly associated with a wide range of social variables. There is little
evidence available in this study whether adolescents gambling could leads to adult gambling, and
adolescents gambling behavior could predict adult problem gambling.

2. Cheryl B. Moss, Shuffling the Deck: The Role of the Courts in Problem Gambling Cases,
6 UNLV Gaming L.J. 145 (2016)

50
Available at: https://gust.com/companies/online-rummy-game-in-india-and-international
51
(2009) 1 WLR 701

17
This article deals with legal gambling which has a long history in the United States and
approximately 125 million American adults engage in some type of gambling behavior each
year. Of those, most do not experience any negative consequences as a result of their gambling.

3.Nicholas Burkhart; Dylan Welsh, The Legalization of Sports Gambling: An Irreparable

Harm or the Beginning of Unprecedented Growth, 21 Sports Law. J. 145 (2014).

Having endured numerous gambling scandals in years past, the Leagues could establish this
causal connection by presenting evidence of ensuing losses in revenues, ratings, and franchise
values following such scandals. In the alternative, the Leagues could substantiate their
reputational-injury claim by refuting the results of independent sources concluding that the NBA
experienced growth in the aforementioned metrics following the 2007 Donaghy scandal. The
Leagues have done neither. Absent contrary evidence repudiating the results of independent
sources, the proffered surveys must be viewed with heightened scrutiny.

But for some, gambling can have negative effects on behavior and functioning and if those
effects become severe and persistent, that individual can be said to have a gambling disorder.

Crypto currencies in Gambling:

Crypto currencies are virtual hence, they cannot be taxed. This can be easy way of investment
becomes the cause for money laundering. There is always uncertainty in crypto currencies as no
one can predict its value growth or downfall.

“The government does not consider crypto currencies as legal tender or coin and will takes all
measures to eliminate the use of these crypto currencies assets in financing illegitimate
activities,” Mr. Jaitley, the Prime Minister of India, said during his budget speeches.52

Payment and Settlement Act, 2007

52
Financial Times, https://www.ft.com/content/80dd8e4c-0726-11e8-9650-9c0ad2d7c5b5 (Feb. 1, 2018).

18
Reserve Bank of India (RBI) is given authority under Section 453 this act to regulate all forms of
electronic payment. This act also gives RBI all sorts of authority over all aspects of payment
processing in India, as well as the rights to enter and inspect with or without notice and access to
all financial and customer data upon request. It has full right to instruct banks to decline or refuse
and payments or deposits involving any particular payment processor, e-wallet or clearing house.
If the player uses gambling processors, RBI has right to ban the mode of payment and make the
money illegal.54

Indian Contract Act, 1872

According to Section 3055, makes a contract which is entered into by way of a wager
unenforceable in law; that is one of the party cannot go to the court suing the counter-party for
breaching any agreement that relates to a wager. However, this does not render the contract
illegal.56 In the case of Gherulal Parakh v. Mahadeodas Maiya and Others57 the Supreme Court
of India held that agreements which are collateral to wagering agreements which are held to be
non-enforceable under Section 30 of the Contract Act, are perfectly legal and can be enforced in
a court of law.

Wire Act, 1961 (U.S.)

Prior to the entry of the Unlawful Internet Gambling Enforcement Act, the law most often used
to direct web based betting was the Wire Act. This law was passed to help state governments
with "requirement of their laws relating to betting, bookmaking, and like offenses and to help in
the concealment of sorted out betting exercises by restricting the utilization of wire

53
§ 4 of Payment and Settlements Act, 1974:
Payment system not to operate without authorisation : (1) No person, other than the Reserve Bank, shall
commence or operate a payment system except under and in accordance with an authorisation issued by the
Reserve Bank under the provisions of this Act
54
Gambling Laws in India, LawLex, https://lawlex.org/lex-pedia/gambling-laws-in-india/8590(Nov 4, 2013).
55
§ 30 of Indian Contract Act, 1872:
Agreements by way of wager, void.—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 the result of any game or
other uncertain event on which any wager is made.
56
Wagering Agreement are non-enforceable under section 30 of Contract Act: what are the pratical implications on
the Indian Gambling Industry?, Glaws https://glaws.in/2011/08/01/wagering-agreements-are-non-enforceable-under-
section-30-of-contract-act-what-are-the-practical-implications-on-the-indian-gambling-industry/ (Aug. 1, 2011).
57
AIR 1959 SC 781.

19
correspondence offices which are or will be utilized for the transmission of certain betting data in
interstate and remote business".

Unlawful Internet Gambling Enforcement Act of 2006 (U.S.)

This act prohibits gambling businesses from knowingly accepting payments in connection with
the participation of another person in a bet or wager that involves the use of the Internet and that
is unlawful under any federal or state law (termed “restricted transactions” in the act).  Pursuant
to the act, Treasury and the Federal Reserve Board (in consultation with the U.S. Attorney
General) promulgated regulations requiring financial institutions and certain other participants in
designated payment systems to establish and implement policies and procedures reasonably
designed to prevent or prohibit the processing of restricted transactions.58

This act notifies five designated payment systems. (i) Automated clearing house (ACH) systems,
(ii) card systems, (iii) check collection systems, (iv)money transmitting businesses, and (v) wire
transfer systems. Participants in these payment systems that have direct relationships with a
commercial customer can assess the risk, if any, that the customer is engaged in unlawful
Internet gambling. Such participants and third-party processors are non-exempt and should have
reasonably designed policies and procedures to prevent or prohibit restricted transactions. 59
Therefore, this system can identify the participant with illegal money transfers and thereby
preventing scrupulous funding to illegal activities.

European Convention on Cyber Crime

The main objectives of this convention are (1) harmonize the domestic criminal substantive law
elements of offences and related offences to cyber crimes (2) to harmonize the domestic criminal
procedural laws necessary for the investigation and prosecution of such offences as well as other
offences committed by means of a computer systems or evidence which is in electronic form.
Article 2 of the convection deals with illegal access, this helps in identifying hacking, cracking

58
OCC BULLETIN 2010-17, Office of Comptroller of the currency, U.S. Department of the treasury
https://www.occ.gov/news-issuances/bulletins/2010/bulletin-2010-17.html (May 20, 2010).
59
Unlawful Internet Gambling Enforcement Act of 2006,
https://www.fdic.gov/news/news/financial/2010/fil10035a.pdf

20
or computer trespass etc., This gives right to identify the player whose transfers stakes of money
to another person.60

Gambling Act, 2005 (U.K.)

This act came into force with a specific objective to prevent gambling from being a source of
crime or disorder or being used to support crime, ensuring that gambling is conducted in a fair
and open way and protecting children and other vulnerable persons from being exploited by
gambling. Gambling Commission was established under this act whose role is to regulate
commercial gambling within the territory of the Great Britain in partnership with the local
authorities and the national sporting bodies. The England and Wales Cricket Board, the Football
Association, England and Wales, the Horse Racing Regulatory Authority, work in tandem with
the Gambling Commission to curb betting by players within the sport, through their own internal
bye-laws. This act has laid strong and robust foundation to legalize an act that many mature
economies and developing economies fight shy off. 61

Gambling and the Bank Secrecy Act, (U.S.)

The Bank Secrecy Act (“BSA”) is a complex set of federal laws and regulations that require
“financial institutions” to keep records, make reports, and conduct due diligence as a means of
helping the federal government detect financial crimes.  Failure to comply with BSA
requirements can have costly consequences. It then notes potential penalties, explains why
federal enforcement agencies are interested in casinos, and describes the results of some recent
enforcement actions.  Finally, it looks at forms of casino-style gambling, e.g., “cruises- to-
nowhere,” and considers why enforcement officials may look for ways to bring them under the
BSA and how that could be done.

As states and tribes look to authorizing additional forms of gambling as sources of new revenue,
many businesses will be tempted to enter the market.  This expansion would likely cause
60
Aparna Viswananthan, Cyber Law, 102 (LexixNexis, 1st Edn. 2012).
61
Ali K. Qtaishat; Ashish Kumar, Sports Betting: Surveying the Legality Issues and Current Developments,
20 J.L. Pol'y & Globalization 40 (2013).

21
government agencies tasked with enforcing the BSA to broaden their enforcement beyond the
traditional large, land-based casinos.62

Conclusion
The Public gambling Act, 1867 is subjected to state amendments under schedule VII list II entry
34 of The Indian constitution. The Act excludes game of skill within the ambit of gambling but
there are some state amendments which include game of skill in the meaning of gambling. The
act underwent many interpretations. One of the major interpretation is legality of rummy, cricket
betting and horse racing. Concept of Online gambling has not yet evolved in Indian judiciary.
Online gambling has been recognized internationally but Indian legislature has failed to
understand its growth. Some states like Sikkim made online gambling regulatory.

Recommendations

The researchers would like to recommend the following:

1. According to the Lodha Committee, legalizing betting in a manner akin to that of the UK will
have long-term beneficial effects to the game as well as to the Indian economy. The Report states
that the worldwide legal sports betting market is worth over $400 billion. Juxtaposing both the
interests of cricket by ensuring transparency and protection of players along with the interests of
the economy, it is in the best interests of all parties to legalize betting in cricket.

2. In the recent even government of Goa decided not to give licenses to new floating casinos on
the Mandovi river, potentially foregoing millions of rupees in revenue for the exchequer. Goa
currently earns up to Rs 100 crores in taxes per year from the gambling industry, and it accounts
for 95 percent of all legal gambling in the country. Daman and Sikkim make up for the rest.63
3. The New German Anti Money Laundering Act is extended from online gambling to offline
gambling. It is based on the procedure ‘Know Your Customer’ (KYC) based on ID verification
for online gambling. A win of 2000 Euro in stakes is considered for offline gambling. It even
applies to non-licensed gambling companies. This act puts an eye on money transfer and thereby

62
Available at:http://www.klgates.com/gambling-and- the-bank- secrecy-act- 05-19- 2015/
63
Harsh Vardhan Dhanik & Shivam Chhalotre, GAMBLING IN INDIA- SHOULD BE LEGALISED OR NOT?,
International Journal of Research and Analysis Volume 2 Issue 1.

22
curbing check on funding terrorism.64This act also makes the parent company comply with this
Act. This policy should also be implemented in India.

Case analysis (nikhila)

1. Case Title and Citation: State of Andhra Pradesh v. K. Satyanarayana and others, (1968) 2
SCR 387.

Topic: Gambling

Scope/ Chapter : The Public Gambling Act, 1867

Brief Facts of the case:

The police raided the premises of club. They found respondents playing card game “rummy” for
stakes. At the time of the raid, there were some counters on the table as also money and course
the playing cards with the players. The Magistrate convicted all the seven respondents and
sentenced them to various fines, with imprisonment in default. High Court upheld the decision of
Magistrate court.

Question of Law/ issued:

1. Whether the premise of club is a common gambling house?

2. Whether the game of rummy is entirely a game of chance?

Judgment:

1. Section 3 defines of Public Gambling Act defines a “common gambling house”. Here, the club
is used as a common gaming house.

2. The game of rummy is not entirely game of chance. It is mainly and preponderantly a game of
skill. Rummy cannot be said as a game of chance and there is no skill involved.

Grounds of Appeal:

The ground of appeal is Public Gambling act, 1867 prohibits punishment of

Cases Referred: In Re Somasundaram Chettair, AIR 1948 Mad 264

Judgment and Order

64
Available at: https://www.dlapiper.com/en/germany/insights/publications/2017/06/new-german-anti-money-
laundering-act/

23
Upheld the decision of high court and dismissed the appeal.

Comment or Observation

This is a landmark judgment explaining game of skill and game of chance. Rummy is game is
game of skill and chance. Money is being made by playing this in premises. Therefore, it comes
under gambling.

2. Case Title and Citation: M.J. Sivani v. State of Karnataka, (1995) 6 SCC 289.

Topic: Gambling

Scope/ Chapter: T. N. Gaming Act, 1930 and Mysore Police Act, 1963

Question of Law/ issued:

Whether video game is a game?

Judgment:

Gaming has been defined as: to play any game, whether of skill or chance for money or money’s
worth; and the act is not less gaming because the game played is not itself unlawful and whether
it is involved or did not involve skill. Even if it game is for a amusement or diversion of a person
from his usual occupation for entertainment, it would constitute gaming.

Grounds of Appeal:

The appeals by special leave from the Division Bench judgment of the Karnataka High Court in
writ appeal.

Cases Referred:

State of A.P. v. K. Satyanarayana, AIR 1968 SC 825, Maneka Gandhi v. U.O.I, (1978) 1 SCC
248, S.L. Kapoor v. Jagmohan, (1980) 4 SCC 379

Ratio Decidendi:

Skill as well as chance plays part in gaming.

Comment or Observation

24
This is case’s facts are not mentioned. The appeal is based on questions of law. The
constitutionality and validity of children playing video game is questioned and issue of license
for playing video games is valid or not.

3. Case Title and Citation: Manoranjitham Manamyil Mandram v. State of Tamil Nadu, AIR
2005 Mad 261.

Topic: Gambling

Scope/ Chapter: T. N. Gaming Act, 1930

Brief Facts of the case:

The appellant under writ of mandamus to forbear respondents from preventing of society in the
premises near Church Junction and also from preventing the members of the petitioner society
from playing game of Rummy, Table Tennis, Chess, Carrom Board.

Question of Law/ issued:

Whether or not game is of mere skill is a question of fact?

Judgment:

Gaming by itself is playing any game, sport past-time or exercise, lawful or unlawful, for money
or any other valuable thing which is tacked on the result of the game, i.e. which has to be lost or
won according to the success or failure of the person who is tacked. Gaming is now always
associated with taking of money or monies worth on the result of a game of pure chance of
mixed skill and chance.

Cases Referred:

Saligram v. Emperor, 1993 Cal 8, V.V. Krishna Rao v. District Magistrate, AIR 1977 AP 128

Order

The writ appeal is disposed of. The appellant shall always have the right to question the same or
challenge the action of the incidents if it is not in accordance with law.

25
Comment or Observation:
Every game has its own features. Whether it is game of skill or chance is to be based on the
game.

Case Analysis (K. Madhumita)

Case analysis I

Case title and Citation: Dr. K.R. Lakshmanan vs State Of Tamil Nadu And Anr, 1996 AIR
1153.

Topic: Gambling

Provision of law:Tamil Nadu legislation

Brief facts of the case: The Madras racing club used to conduct horse racing and betting on the
race used to be conducted in their own premises where horse racing used to be held.

Issues raised:
1. What is `gambling'?
2. Whether the running of horse-races by the club is a game of "chance" or a game of "mere
skill"?
Judgement: 1. The court defined gambling as per the new Encyclopaedia Britannica and Black
Law's Dictionary as "gambling involves, not only chance, but a hope of gaining something
beyond the amount played. Gambling consists of consideration, an element of chance and a
reward".

2. Horse racing is game of skill as it contains choosing a certain breed of horse and training it.
this shows that skill dominates chance in this sport.

Cases referred: 1.  R.M.D. Chamarbaugwala & Anr. vs. Union of India & Anr., AIR 1957 SC

2. State of Andhra Pradesh vs. K. Satyanarayana & Ors. (1968) 2 SCR 387

Judgment and order: Horse racing is game of skill within the ambit of  Section 49 of the Police
Act and Section 11 of the Gaming Act.

26
Observations: Horse racing is considered as game of skill because of the training that the horse
undergoes. this case stands as landmark judgment for stating that horse racing is game of skill.

Case Analysis II

Case title and citation: The State Of Bombay Vs. R. M. D. Chamarbaugwala , 1957 AIR 699.

Topic: Prize competition

Provision of law: The Bombay Lotteries and Prize Competitions Control and Tax
(Amendment) Act of 1952.

Brief facts: A company had a wide circulation of news paper in the State of Bombay, where the
respondents set up collection depots to receive entry forms and fees, appointed local collectors
and invited the people by advertisements in the paper to participate in the competitions. It was
challenged in the court of law.
Issues raised: The impugned Act and particularly its taxing provisions were beyond the
competence of the State Legislature and invalid inasmuch as they were not legislation with
respect to betting and gambling under state list.
Judgment: R.M.D.C. Crosswords are of a gambling nature.
Cases referred: PP Kutti Keya and ors. Vs. The State of Madras and Ors.
Judgment and order: Prize competition by the company were held to be gambling and appeal
was allowed.
Observations: Court has made keen observation on the conduct of the prize competition held by
the company as that way of conducting the competition would amount to game of chance which
leads the competition to come within the meaning of gambling.

27
 Case analysis III
Case title and citation: Hawaibam Meramacha Singh Vs Manipur Administration

Equivalent citations: 1961 CriLJ 504

Topic: Gambling

Facts: On Dewali Day, when usually gambling takes place. A Police Party consisting of P. Ws.
3. 4, 7, 8 and others were going about in a Police truck at about 5 or 6 p. m..when it was already
dark with a view to detect gambling and for arresting the gamblers.

Provision of law : Section 13 of the Public Gambling Act and Section 332 of IPC

Judgement: The convictions of the petitioner under Section 332 I.P.C. and Section 13 of Public
Gambling Act are therefore set aside and he is convicted under Section 323 I.P.C. As for the
sentence, it is admitted that the petitioner is an old man of 65 years of age. We must also
remember that it was Dewali Day when people were in a gay mood and that the Police also were
exceeding their authority in trying to arrest the petitioner and others. The petitioner has already
been in Jail for nearly two months. Under the circumstances I consider that the period of
imprisonment already undergone by the petitioner is sufficient to meet the ends of justice. The
petitioner is directed to be set at liberty immediately.

Judgment and order: there was no proper grounds to arrest the individual as the ingredients
under section 13 of the public gambling act were not fulfiled.
Observation: no cases were referred in this case. this case has clearly examined the ingredients
of Section 13 of the Public Gambling Act, 1867.

28
 case analysis (aakash sharma)

CASE ANALYSIS- 1

Case: Dominance Games Pvt. Ltd. & Others v. State of Gujarat

Topic: PUBLIC GAMBLING

Provisions of law: Section 13 of the Gujarat Prevention of Gambling Act

Facts:  Poker clubs contended that Section 13 of the Gujarat Prevention of Gambling Act
exempts games of mere skill from the ambit of gambling. He noted that every game of skill has
an element of chance and therefore a game having substantial and preponderant element of skill
is exempt from the provisions of the Gambling Act.

Preliminary issue: Whether the refusal of ‘No Objection Certificate’ by the police without
going into the merits of the game of poker and hearing the petitioner clubs was arbitrary,
unreasonable and violative of principles of natural justice?

Judgement: The court stated that the game of poker depends on the game of circumstances of
the player and the amount of money he can spend on the game. The court held that any game,
even if it involves skill but is played with stakes would fall within the ambit of gambling.

Cases reffered: 1. State of Andhra Pradesh v. K. Satyanarayana

2. Dr. KR Lakshmanan v. State of Tamil Nadu

Judgement & order: The appeal was dismissed.

Critical analysis: In my view the judgement given by the court in the ambit of gamblingis
correct as the game of poker is wholly dependent on the good luck of the person it is not in the
hand of the person. I agree thet it involves special skills

29
 CASE ANALYSIS- 2

Case: U.S. v. JAY COHEN

Citation: 260 F.3d 68 (2nd Cir. 2001)

Topic: Internet gambling

Provisions of law: violation of 18 U.S.C. § 1084 (“§ 1084”)

Facts: Cohen, as President, and his partners, all American citizens, dubbed their new venture the
World Sports Exchange (“WSE”). WSE operated an “account-wagering” system.   It required
that its new customers first open an account with WSE and wire at least $300 into that account in
Antigua.   A customer seeking to bet would then contact WSE either by telephone or Internet to
request a particular bet.   WSE would issue an immediate, automatic acceptance and
confirmation of that bet, and would maintain the bet from that customer's account.

Preliminary issue: (1) whether the Government was required to prove a “corrupt motive” in
connection with the conspiracy in this case;  (2) whether the district court properly instructed the
jury to disregard the safe-harbor provision contained in § 1084(b);  (3) whether Cohen
“knowingly” violated § 1084;  (4) whether the rule of lenity requires a reversal of Cohen's
convictions;  (5) whether the district court constructively amended Cohen's indictment in giving
its jury instructions;  and (6) whether the district court abused its discretion by denying Cohen's
request to depose a foreign witness. 

Judgement:  The court rejected defendants claim.

Cases referred: People v. Powell

United States v. Thomas

30
Judgement & order: The court held that Cohen had disregarded the Wire Act in light of the fact
that such wagering is illicit in New York.

Critical analysis: As there is a drawback of jurisdiction in internet gambling which can be

clearly seen in this case.

CASE ANALYSIS- 3

Case: Minnesota v. Granite Gate Resorts, Inc.

Citation: 568 N.W. 2d 715

Topic: Internet gambling

Provisions of law: Minnesota Consumer Protection statutes

Facts:Defendants uploaded on a World Wide Web server apparently located outside of

Minnesota a web site named "Wagernet". After submitting an application and establishing an
account by sending at least $1000 to Belize, the United States resident received hardware which
permitted him, via telephone modem, to place wagers on sporting events. Should any dispute
arise, the participant agreed that he could be sued, at Wagernet's option, either in his home state,
or in Belize. The web site also advertised a second service, which sold its customers tips on
betting sporting contests via a telephone number featured in the site's advertisement. The State
established that a number of Minnesota residents had accessed the defendants' site, had called the
telephone number to obtain touts, and were on Wagernet's mailing list

Judgement:The court, stated: "Defendants contend that this is not a two-way transaction. The
contention of the Defendants is that Wagernet has transmitted nothing over the and that the only
person in this case who would transmit anything would be Minnesota residents who contact
WagerNet. The way the pictures and words get to the Minnesota residents is by the server,
Vegas.com, automatically transmitting it back to the Minnesota resident.

Cases reffered: Playboy Enterprises, Inc. v. Chuckleberry Publishing, Inc.

31
Judgement & order:The court also held that the placement of such an advertisement on the was
akin to placing a advertisement in a publication of national circulation, and hence constituted
availing oneself of the Minnesota market.

Critical analysis: The case above here tells about what the advertisement may be in terms of
online gambling.

Case Analysis (Abhishek)

CASE NAME : Gaussian Network Case.

TOPIC : 36 RULE 1 CPC

FACTS : April 21, 2016 saw a very unexpected turn of events. The Counsel appearing for
Gaussian sought permission from the High Court to withdraw the revision petition. There was a
ambiguity whether game of skill can be played on virtual mode?

ISSUE : The question of whether a virtual platform could allow games of skills to be played for

stakes also came up for consideration before the Delhi District Court A petition was

filed under Order 36 Rule 1 of the CPC seeking the opinion of the district court on inter alia

whether there was any restriction in allowing participants to play games of skill for stakes

with the intention of making a profit.

CASES REERRED : as R. M. D.Chamarbaugwalla v. Union of India, State of

Andhra Pradesh v. K. Satyanarayana & OrsandK R Lakshmanan v. State of Tamil Nadu.

JUDGEMENT : The Court had opined that it would be illegal to

32
allow skill based games to be played for stakes in the virtual space. It observed that the degree of

skill prevalent in games played in the physical form cannot be equated with the degree of skill

involved while game was played online. The Court seems to have assumed that the degree

of chance would increase in online gambling; and there was a possibility for manipulation of

outcomes by cheating and collusion.

The High Court acceded to the request made by the parties and granted permission to withdraw

the reference made before the Delhi District Court and the revision petition filed before the

High Court. The observations of the District Court, thus, do not survive any longer.

Case analysis II

CASE NAME - Bimalendu De v. Union of India & Ors.,

TOPIC – GAMBLING

SCOPE – the West Bengal Gambling and Prize Competition Act, 1957

FACTS- the legality of the popular show Kaun Banega Crorepati (“KBC”) was challenged.

ISSUE - A public interest litigation was filed before the Calcutta High Court requesting that the
game shows KBC (a game show based on the format of popular British show ‘Who wants to be a
Millionaire’) and Jackpot Jeeto be prohibited from being telecast on television on the grounds
that the same amounted to gambling, and were hence prohibited under the laws. The court
reviewed the provisions of the West Bengal Gambling and Prize Competition Act, 1957 (which
has an analogous provision to the Prize Competitions Act) and

JUDGMENT - held that game show did not fit within the definition of a ‘prize competition.’
Similarly, the Bombay High Court has also held that the Prize Competition has a limited
meaning and does not include games of skill and competitions such as KBC. . As such, the Prize
Competition Act only regulates a competition when prizes are offered for the solution of any

33
numerical or alphabetical puzzle. While the prize competitions are regulated under the Prize
Competition Act and the state specific prize competition laws.

Case Analysis III

CASE NAME: Gherulal Parakh vs. Mahadeodas Maiya And Others on 26 March, 1959

CITATION: 1959 AIR 781, 1959 SCR Supl. (2) 406

TOPIC: section 23, 30 INDIAN CONTRACT ACT 1872

FACTS: The appellant and the respondent no.1 entered into a partnership with the object of
entering into forward contracts for the purchase and sale of wheat with two other firms and the
agreement between them was that the respondent would enter into the contracts on behalf of the
partnership and the profit or loss would be shared by the parties equally. The transactions
resulted in loss and the respondent paid the entire amount due to the third parties. On the
appellant denying his liability. For the half of the loss, the respondent sued him for the
recovery of the same and his defence, inter alia, was that the agreement to enter into the
wagering contracts was unlawful under s.23 Of the Contract Act.

ISSUE: It was contended on behalf of the appellant (1) that a wagering contract being void
under s.30 Of the Contract Act, was also forbidden by law within the 407 meaning of S.23 Of
the Act, that (2) the concept of public policy was very comprehensive in India
Since the independence, and such a contract would be against public Policy, (3) that wagering
contracts were illegal under the Hindu Law and (4) that they were immoral, tested by the
Hindu Law doctrine of pious obligation of sons to discharge the father's debts.

JUDGEMENT: Held, that the contentions raised were unsustainable in law

And must be negatived. Although a wagering contract was void and unenforceable
Under s.30 Of the Contract Act, it was not forbidden by law and a agreement collateral to such a
contract was not unlawful within the meaning of s. 23 Of the Contract Act. A
Partnership with the object of carrying on wagering transactions was not, therefore, hit by that
section.

34
35