Legalisation of gambling in India

Colonialism in India left a lasting impact which can be felt even today. Many
provisions such as Section 497 of the Indian Penal Code have been decriminalised
and criticised as outdated1. However, some laws seem to find themselves as the
topics nationwide debates time and again, without much action being taken to fix the
issues they concern. One such law is the Public Gambling Act (PGA) of 1867, which
was put in place by the East India Company, outlawing gambling across the nation,
except in cases of games that require skill in addition to good fortune 2. While the law
was only binding in the pre-independence era, the current legislature still seems to
draw inspiration from its archaic provisions. The United Kingdom itself legalised
gambling in 1961, but the same reform has not made its way in most parts of India.

The Constitution considers gambling a state subject, allowing each individual

state to make their own laws on it. However, as mentioned previously, the origin of
these laws is rooted in the PGA (1867). As of today, only the states of Goa and
Sikkim have legalised and regulated gambling, in addition to the union territory of
Daman and Diu. In contrast, states like Madhya Pradesh, Punjab and Jammu and
Kashmir among others currently have some of the most stringent regulations on the
subject. There are several reasons for this collection of laws that leans towards an
anti-gambling stance, which is exactly what this essay serves to analyse and argue
against.

1. Morality

The Indian legislature has a long history of attempting to regulate morality in

society, especially using laws that have existed since the colonial era. Part of this
may be because of the slow process of change that demotivates most stakeholders
from participating in the same. However, there is still a very visible section of society
that continues to expect the State to enforce the dominant idea of morality upon the
entirety of the citizen base. This is primarily what plays in this situation as well.
Despite an underlying culture of appreciation for the ‘sport’, the majority still shys
away from acknowledging this fact publicly. Gambling and its addiction have their
own respective taboos in society, despite the former being a large part of festival
celebrations in India. In fact, even addiction seems to be so culturally prevalent in the
country that it finds itself as a part of the central theme of the mythological text The
Mahabharata3

However, even if gambling did not invite a large participant base, it is still very
unjust to criminalise the act based on an age-old idea of morality. Perhaps its harms
and immorality were highlighted by preachers like Mahatma Gandhi and many
legions of legislators after him, but that does not suffice to criminalise the freedom to
1
Kumar R, “Adultery Law: SC Ruling to Help Build Healthier Relationships” (Live MintSeptember 27, 2018)
<https://www.livemint.com/Politics/ccNIClLlA448cj8T3sUlOO/Adultery-law-SC-ruling-to-help-build-
healthier-relationship.html> accessed October 17, 2019
2
Prasad G, “India: Gambling 2019 ”(ICLG.com) <https://iclg.com/practice-areas/gambling-laws-and-
regulations/india> accessed October 17, 2019
3
WILLIAMS MONIER, “INDIAN EPIC POETRY: Being the Substance of Lectures Recently given at Oxford”
(Amazon2016) <https://www.amazon.com/Indian-Epic-Poetry-Monier-Williams/dp/3741127108> accessed
October 18, 2019
play a sport of one’s choice, that does not compromise anyone else’s right to
existence. After all, the same legislators who seem to want to enforce stringent moral
regulations seem to also despise the idea of criminalising abhorrent acts like marital
rape, so who is to say that they make the best of moral decisions. The primary
function of the legislation should always be to set basic standards of co-existence in
society that protect those who need it. In criminalising gambling, they cause far more
harm than good, and thus cannot be said to hold in good favour of the masses.

2. Money

Despite the diverse laws, gambling has remained a notoriously popular sport
in India. According to a 2010 report, India has a gambling market valued at
approximately $60 Billion4.These trends witness a hike in festivals such as Diwali
and Holi by almost 30%-40% It can certainly be said that India loves its gambling. All
of this money goes unregulated year after year and remains concentrated primarily
in the hands of the upper classes. There have been rumoured connections of this
money even with terrorism5.

Therefore, whether in the interest of security or to bring in more money for the
government, legalisation of gambling can really change things for the centre.
Legalisation will bring this money into the ambit of taxation. The state of Goa
currently raises 1.35 Billion rupees every year just from taxing the money made out
of gambling. This also comes with the added advantage of rise in tourism, as exists
in countries like Thailand. From a purely opportunistic perspective, it thus makes far
more sense for the government to consider decriminalising gambling.

3. Social Consciousness

A widely understood reason for placing a ban on gambling is out of social

consciousness. The implications of mental illness may not be well understood in
Indian society; however, addiction is quite a common occurrence. It is understood
that families as an entirety often suffer at the hands of a gambler within themselves.
The desire to protect these families is understood as one of the reasons for
criminalising the act of gambling. While the sentiment is appreciable, it also indicates
that the manner in which mental illness is regarded in India.

Compulsive gambling typically refers to “the uncontrollable urge to keep

gambling despite the toll it takes on your life” 6 This clearly indicates that while it may
be a choice to gamble, addiction is not. Despite a clear understanding of this fact,
the government continues to view and treat it as criminal. While it is understandable
that this particular addiction can threaten the life and means of sustenance of the
family of the gambler, criminalising the latter will not change much. There is also a
medical link between gambling addiction and a predisposition towards substance
4
Sachitanand R, “India May Be Poised to Benefit from a Broadly Legalized Gambling Market” ( Economic
Times) <https://m.economictimes.com/news/politics-and-nation/india-may-be-poised-to-benefit-from-a-broadly-
legalized-gambling-market/articleshow/44870392.cms> accessed October 17, 2019
5
Wasan NR, Mody JM and Kanade Vundefined, “Should Gambling b Legalised” (The Hindu)
<https://www.thehindu.com/opinion/op-ed/should-gambling-be-legalised/article23385128.ece> accessed
October 17, 2019
6
Anonymous, “Compulsive Gambling” (Fortis Healthcare)
<https://www.fortishealthcare.com/india/diseases/compulsive-gambling-195> accessed October 17, 2019
abuse. Keeping in mind the condition of prison systems in the country, there is not
much change in behaviour that can be expected of a criminal once they go through
the process. If anything, life in incarceration will only contribute to lowered
employment prospects and poorer mental health. This, in addition to the tendency of
addiction to relapse, will only reinstate the cycle of abuse and detriment that
gamblers find themselves stuck in. In order to combat this issue, legalisation is
important. By allowing gamblers to be registered and recognised citizens of society,
they are allowed to remain in periodic check of the State. Regulations can be
implemented to ensure socially responsible gambling. The funds that the legalisation
would bring in would allow this regulation to ensure, in addition to providing
treatment for those affected by the disease of addiction. Holistically, this works out
much better for all those who the current legislation seeks to protect, in addition to
the gambler.

4. Sporting Events

It is no secret that India loves its cricket about as much as it loves its
gambling, if not more. However, in the midst of nationalistic fervour and enthusiasm
lies the darker side of the thrill that the sport brings in the form of match-fixing. Some
critics have argued that legalising gambling, which thereby allows legal betting at
sporting events, would create impetus for fixing cricket matches. However, former
International Cricket Council chief, Ehsan Mani, has asked and often urged that India
decriminalise betting in sports to make way for better regulatory policies, and rightly
so7. Despite the many regulations that are in place, betting in sports is still a widely
accepted practice, with a current market of about 270 crore rupees 8. Therefore, it is
clear that simply criminalising an act does not rid society of its prevalence. Further, it
has been explained before that imprisonment does not solve much for a regular
gambler. It is also futile to argue that legal gambling would culminate in the
compromised integrity of sportsmen. Countries like Australia and England also
legally allow betting in sporting events; however they do not have any rampant
epidemic of sport or match-fixing, despite an equally large fan base for the sport 9.
This is a classic case of how correlation does not always imply causation. Therefore,
this stand does not hold much weight.

Means of Legalisation

The debate revolving around gambling is still among one of the more
controversial debates, with the critics of its legalisation making some fairly valid
claims. While there are some vivid concerns regarding the practical implementation
of such decriminalisation, they are certainly not undoable. For instance, the concern
of regulation and keeping tabs on individuals can be accomplished through linking
active gamblers with their PAN or AADHAR cards. This not only enables a check on
individual activity but also serves as a safety valve for the flow of funds within the
7
AFP, “Ex-ICC Chief Says India Is Illegal Betting Hub” (The Hindu)
<https://www.thehindu.com/sport/cricket/exicc-chief-says-india-is-illegal-betting-hub/article3017049.ece>
accessed October 17, 2019
8
Hoult N, “India's Organised Crime Gangs Control Asian Betting Markets” (The TelegraphMay 27, 2010)
<https://www.telegraph.co.uk/sport/cricket/international/india/7769014/Indias-organised-crime-gangs-control-
Asian-betting-markets.html> accessed October 17, 2019
9
Anonymous, “Cricket Betting in Australia” (Cricket Betting) <http://www.onlinecricketbetting.org/australia/>
accessed October 17, 2019
sphere of legal gambling. Furthermore, to tackle the concern of fixing in sports, the
act of fixing should be criminalised, while betting itself should continue to remain
legal. This would narrow down the search for the actual perpetrators of ethical
violations in sporting events and also save funds on penalising victimless criminals.
Finally, it would be important to constitute regulatory authorities to ensure safe and
socially responsible gambling, while providing assistance to all those who suffer from
addictions. It would also be important to set caps on betting amounts in accordance
with the financial capacity of an individual, so as to prevent significant loss and
extended harm from compulsive gambling. These factors in combination serve to
illustrate a very real and achievable form of legalised gambling that would be in the
direct interest of the general public, which merely leaves the concern of resolving the
moral restrictions of the State. Such personal whims must not find any room in the
legislature, and its functioning must always be primarily to protect the interests of the
citizens of the country. For as Kant rightly puts it, “Beneficence is a duty; and he who
frequently practices it, and sees his benevolent intentions realised comes, at length,
really to love him to whom he has done good.”10

10
Anonymous, “Quotes” (Forbes Titles) <https://www.fortishealthcare.com/india/diseases/compulsive-
gambling-195> accessed October 17, 2019