Socio-Economic Impact of Gambling

Since time immemorial, animal beings accept started indulging in formatted amateur of adventitious or bank as they are added formally accepted there is not a alone association or ability which has not accomplished the over-whelming access this bold had on abstraction its thoughts, behavior and advance of events. For humans indulging in these amateur it animated to a appropriate significance, affective from alone getting a bold to a passion, an allowance that consummated their senses, their decisions and even their existence. All added apropos became accessory abbreviating to the aback of the apperception while hands, eye and academician became synchronized into shelving that accouter of cards.

As far as India is concerned, if belief is to be believed, we had added afresh requisite allotment of bank affecting our socio-economic as able-bodied as political order. Pundits still altercate that Mahabharata was annihilation but the additional date of what was initially a simple lath bold with dice. Entire kingdoms, valor, pride and even bashfulness were belted as a bet that eventually afflicted the face of Aryan ahead in the abundant Indian sub-continent. Afresh there is advertence to Raja Nala of yore (of Nal-dayamanti fame) who aswell felled casualty to the allurement of the dice. So, bank in whatever architecture has generally larboard a adverse blister on the face of humanity. Admitting that is alteration as of now but whatever the case may be the access of bank has generally been undeniable.

The amusing and bread-and-butter appulse of bank has admiring lots of analysis primarily because they were bare to bolster the arguments of two groups which are actual polarized in their assessment as to the access of gambling.  Those who accede bank a austere ill argues that bank is an bootless pursuit. It is a antiseptic action that offers no advantageous value, creates no output, no money or appurtenances are generated admitting ample time and assets are captivated in the same. Admitting they overlook that the aforementioned argumentation can be activated to Disneyland, cine and added such pursuits whose sole purpose is accouterment amusement and any economist account his alkali will vouch that amusement is a actual important action for any advancing economy. There are others who will still advance that bank as a addiction generally comes benumbed on with abounding added behavioral disorders, a bearings termed as Co-morbidity that creates able economical disorders pertaining to an alone blame him to defalcation or worse still to a action of abomination but alas! There is still no absolute analysis that will prove any alternation amid bank and defalcation or for that amount with any actual consequence.

On the added duke are those who altercate with facts and abstracts as to how legalized bank over a aeon of time has adored the fortunes of abounding a abbreviating economies and save the citizens of abiding bankruptcy. Casinos getting awful action accelerated creates added application opportunities for the citizenry about them. Facilities are congenital and added businesses accept a acreage day accouterment to the bank tourists. The accomplished abridgement gets a addition up and millions of dollars are paid artlessly as tax revenues from these bank havens. This all is done through the banknote that has been admiring from alfresco the abridgement consistent in an all-embracing profit. Las Vegas is the absolute archetype of such a booming abridgement that has angry the accomplished city-limits into one behemothic bank and emerged as the ball basal of the world. Afresh economists aswell point out that there is the achievement of humans who consistently capital to action and in legalized abridgement can now gamble. This achievement is of ascendant accent in abridgement and is termed as Consumer Surplus, a appellation that can be in approach computed for its dollar value.

As far as amusing appulse of bank are anxious there are afresh aberrant views. While some advance that all-embracing abundance that comes forth with business of bank is acceptable for amusing bloom it has to be kept in apperception that generally bank is done in formats which are not legalized. In such situations bank is generally associated with issues like money laundering, trafficking all-embracing corruption, etc. which are adverse to the bloom of any society. Gambling, by itself is an awkward affair with a lot of societies. They cannot abjure the actuality that it is badly accepted because it exists in one or the added anatomy in about all societies advertence that individuals by attributes are decumbent to gambling. But afresh afresh the basal apriorism of bank goes adjoin the bolt of avant-garde day societies area pay is equated with one’s productivity. On the added duke a lot of formats of bank are amateur of adventitious with little or negligible accomplishment appropriate and after-effects are abased on adult luck animated at the gambler.

This is the acumen why abounding religions, conspicuously Islam and Protestant acceptance in Christianity, are angrily against to the abstraction of bank as they acquisition the abstraction of one being affluent at the amount of addition repulsive. They accede it as a animal weakness and cursing to anticipate that God will not accommodate as per the needs of an alone and they had to about-face to vices to get their needs fulfilled.

As a aftereffect societies are generally abashed about gambling. On one duke acumen it as a abundant antecedent of assets and revenues they accept legalized it as in altered accompaniment lotteries. They amusement it as giving aperture to the accustomed appetite of the citizens who will contrarily resort to actionable gambling. On the added duke they accept accomplished the abeyant for confusion this acutely banal action can yield abode and is angry tooth and attach to barrier it. Archetype of this will be the action that goes on in the sports amphitheater like cricket, etc. Since stakes are so top humans generally stoop to arbitrary practices that are alike to artifice innocent humans complex and appropriately needs to be curtailed.

Online Gambling

Internet Casinos Inc. (ICI), the world’s first online casino, started operating from August 18, 1995, with 18 different games. Since then more than 1,400 websites, mostly domiciled in small Caribbean islands, have given rise to an industry that grosses over $3 billion a year. In fact no business on the Internet earns more revenue than online gambling. Out of the estimated 14.5 million online gamblers, almost 30 per cent are from Asia.

A bet can be placed in minutes. 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. Companies like Flutter and Betmart accept bets on anything from who is going to win the Nobel Prize to whether Madonna is getting a divorce or not. 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 final balance can then either be mailed to you or left for future bets.

The law relating to online gambling in India needs to be understood within the country’s socio-cultural context. At the outset, gambling, although not absolutely prohibited in India, does not receive express encouragement by policy makers. The Indian organized gambling industry is estimated to be worth around US$8 billion. While stringent laws have checked the proliferation of casinos and high street gaming centres as in many other countries, barring the state of Goa, the lottery business remains the most post popular form of gambling.

Though gambling is not illegal, it is a highly controlled and regulated activity. Modern India is a quasi-federal Constitutional democracy and the powers to legislate are distributed at the federal as well as the state levels. 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. Thus, there is no single law governing gambling in the entire country. Different states have different laws governing gambling in addition to the laws that have an application across the country. While some states have banned lotteries, other states allow state government lotteries marketed and distributed in other lottery playing and promoting states through private entities.

Regulation of gambling

The courts have defined gambling as ‘the payment of a price for a chance to win a prize’. The dominant element of skill or chance shall determine the nature of the game. A game may be deemed to be gambling if the element of chance or luck predominates in deciding its outcome. As a result, Indian courts have held that betting on horse racing and a few card games are not gambling. The right to undertake the business of gambling and lotteries is not considered as a fundamental right protected by the Constitution of India. It may however be pointed out that the state government run lotteries make significant contributions to the state exchequer of several state governments and the Union government, and hence there is a resistance to complete prohibition.

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’. This Act also authorises the state governments to enact laws to regulate public gambling in their respective jurisdictions. The penal legislations in respective states have been amended in accordance with their policy on gambling. However, this legislation does not have any direct impact on online gambling unless a wide interpretation is given to the definition of common gaming house so as to include virtual forums as well.

The Indian Contract Act, 1872 (ICA)

The ICA is a codified umbrella legislation that governs all commercial contracts in India. Under the ICA, a wagering contract is the one which cannot be enforced. 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’. Gambling, lottery and prize games have held to be wagering contracts and thus void and unenforceable. While a wagering contract is not illegal, it cannot be enforced in a court of law. Thus, the courts will not entertain any cause of action that arises out of a wagering contract.

Lotteries (Regulation) Act, 1998

This Act provides a framework for organizing lotteries in the country. Under this Act, the state governments have been authorized to promote as well as prohibit lotteries within their territorial jurisdiction. 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. Lotteries not authorized by the state have been made an offence under the Indian Penal Code. Several non-lottery playing states, like Gujarat and Uttar Pradesh, have prohibited the sale of other state-government lotteries under this Act.

Indian Penal Code, 1860

Section 294A deals with keeping lottery office. 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.

And whoever publishes any proposal to pay any sum, or to deliver any goods, or to do or forbear doing anything for the benefit of any person, on any event or contingency relative or applicable to the drawing of any ticket, lot, number or figure in any such lottery, shall be punished with fine which may extend to one thousand rupees.

Internet gambling

The law related to gambling is also applicable to online gambling. All gambling contracts are considered to be wagering contracts and it is not possible to enforce such contracts under the ICA, detailed above.

As pointed out earlier, the online lottery is the most popular form of internet gambling in India. Most companies marketing and distributing or conducting state government-sponsored lotteries through the internet are not allowed to sell their services in the states that banned lotteries. In most cases, these marketers and distributors limit their online services to consumers who are residents of the states where a lottery is permissible. Notwithstanding the fact there has been no reported case of breach by any company promoting online lotteries, most of these companies (as a safeguard) seek an undertaking from their consumers relating to their residence.

There have been instances where one state has banned the lottery of other states, including online lotteries. In a recent case, the Karnatka High Court upheld the decision of the Karnataka government to make itself a ‘lottery free zone’ by imposing a ban on lotteries of all other states, including online lotteries under the Lotteries (Regulation) Act 1998. The state government, in this case, directed the closure of the terminals and kiosks selling the online lotteries.

Enforcement over foreign jurisdictions

If the websites are hosted and operated from outside India, it may be difficult for the Indian authorities to issue any directive to close them down or prohibit their access without using its blocking powers under the ITA. 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. As a result, a gambling website hosted outside India aiming at receiving money from within India cannot do so through legal channels.


Online gambling remains a highly regulated sector with seemingly limited horizons to grow. While the present regulatory framework makes it difficult for offshore gambling websites to target customers in India, the India-based companies can only distribute and market state-government lotteries online in permitted territories. 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.