Understanding Gambling Laws in India: The Public Gambling Act, 1976 | A Comprehensive Overview

OVERVIEW

Before documented history, at least, gambling existed in the Palaeolithic era. During the first millennium BCE, gambling establishments were common in China, and betting on animals to fight was a frequent practice. Records show that gambling dates at least to the 14th century in Japan, and playing cards first emerged in China in the 9th century CE. The most widely played gambling game, poker, originated in the United States at least in the seventeenth century. In Venice, Italy, The Ridotto, the first casino, opened for business in 1638. For a very long time, people from all cultures and continents have been enthralled with the thrill, excitement, and possible rewards of gambling. Navigating the world of gambling may be challenging, though, because cultural attitudes and legal frameworks differ greatly.

A Scale of Legality:

Strictly Prohibited: Nations that include Saudi Arabia, Singapore, Lebanon, Cuba, and many more firmly ban any form of gambling for cultural and religious reasons.

State-Sanctioned: Countries like China, Japan, and Britain, amid others, have granted permission for state-sanctioned gambling games, such as pachinko Parlors in Japan and the national lottery in the UK.

Open markets: Cities such as Monte Carlo, Monaco, Las Vegas, USA, and Macau, China, and others are open markets where there is a high stream of revenue and can lead to an increase of government revenue. This is because gambling generates taxing on the winnings of people.

A Patchwork of Laws

(1) National Level: Some countries have centralized gambling laws, while other delegate regulations to individual states, provinces, creating a patchwork of legal frameworks.
(2) Age Restrictions: Minimum gambling ages vary widely, typically ranging from 18 to 21 years, exceptions depending on the game and jurisdiction.
(3) Licensing and Taxation: Governments often license and tax gambling operators to responsible practices and generate revenue.
Gambling’s global reach extends to India, where it boasts of rich historical tapestry. While the game unfolds differently across the world, India’s unique story deserves a closer look. Let’s delve into the fascinating history of gambling in the nation.

Pinpointing the exact origin in India is tricky but as historical references suggest that it dates around 7300 to 300 BCE. In traditional reference Mahabharata it started around 430 BCE. In modern times in 1867 The public gambling Act was enacted, laying restrictions but was open for interpretations. Prior to this law gambling in India was regulated under the Gaming Act 1845 and The Betting Act 1853. These laws were enforced by the parliament of the United Kingdom. After the promulgation of constitution gambling was inserted into (list II of the Seventh Schedule) which gave the state legislature to make independent laws about gambling and betting and this made Goa in 1975 the first state to legalize and regulate casinos under state specified law The Goa, daman & Diu public gambling act 1976.

Simultaneously Daman also in 1976 technically legalized gambling because it followed The Goa, Daman & Diu public gambling Act and not the centralized act that was followed by the rest of the states in India.
There are many laws that apply. The Indian regulations governing gaming. At least some of them are. The Gambling Act of 1867 and the Gambling Act of 1976 for Daman and Diu in Goa. We would only be concentrating on the laws pertaining to gaming in Daman & Diu and Goa.

Review of the Public Gambling Acts is as follows:

This law, which outlawed public betting and the functioning of common gaming institutions across the union territory of Goa, Daman, and Diu, was passed and put into effect on July 30, 1976.
This act was also amended in the year 2021. The amendments were made in section 3,4,11 of this act.
Under section 2 of this act, it defines a common gaming house. According to this section common gaming houses are any home, space, or other location where gaming occurs, where gaming equipment is stored, or where gaming occurs.

1) For all other types of gambling, any residence, space, or room where gaming devices are stored or utilized for the benefit of the owner, tenant, user, or maintainer of such residence, space, or room, even if that residence, space, or instrument is rented out, will be deemed to be a gaming establishment.

2) A tent, enclosure, space, car, and vessel are examples of places.

This section also provides a definition of gaming. Gaming encompasses the following: Wagering and betting, which includes wagering on the numbers that are obtained through manipulation in any way; on the sequence of the numbers; on the numbers themselves; or on pictorial representations; any transaction through which an individual in any capacity engages in any capacity for another individual or engages in that person’s behalf; the gathering or soliciting of bets; the receipts or distribution of winnings or prizes in cash or otherwise in relation to wagering or betting; or any act which is meant to promote wagering or betting, or the gathering, soliciting, receiving, or distribution of any kind of gaming instrument. This includes any item used or intended to be used as a subject, an accessory, or a means of gaming, as well as any document used or intended to be used as a register, record, or proof of any gaming, the earnings from any gaming, and any cash wins or prizes that are distributed or intended to be distributed in connection with any gaming.

Section 4 stipulates the penalties for gambling in gaming establishments. It stipulates that anyone discovered at public gambling establishments or observed playing there faces a maximum sentence of three years in jail, a maximum fine of seven thousand dollars, or both. However, there are a few prerequisites that are: –

  • If this is the first offence, the maximum sentence for jail time would be three months, and the maximum fine would be four thousand dollars.
  • If this is the second offence, the maximum sentence for both the jail term and the fine would be six months and five hundred dollars, respectively.
  • The minimum sentence for a third and subsequent crime is one year in jail. The maximum fine is seven thousand Rupees.

The section 13 of this act declares that no provision of this act will be applicable to games played anywhere that require just a basic level of expertise. But to describe what constitutes a game of mere skill is very tricky and leaves room for interpretation on the side of courts. Like in the case of State of Andra Pradesh Vs K Satyanarayana the apex court went to the extent that games like rummy and cards are based upon games of skill.

Permitted Games — In exercise of powers under this Act, the government can permit electronic games and gambling devices in Five Star Hotels 27 along with betting and gaming on board offshore vessels on intimation subject to certain restrictions which include payment of one-time or periodical fees, as may be applicable.

Conclusion

The gambling regulations outlined in the Goa, Daman & Diu Public Gambling Act, 1976 present a nuanced landscape. While it outright prohibits many forms of public gambling, certain exceptions, such as state-operated casinos, online lotteries, and traditional village games, are allowed. This intricate framework results in a coexistence of legal and illegal gambling activities, complicating enforcement efforts and giving rise to apprehensions about potential social and economic consequences.

Crucial considerations for the future include finding a delicate equilibrium between reaping economic benefits from casinos for tourism and addressing potential social costs such as addiction and criminal activities. With the increasing popularity of online gambling, there is a pressing need for clear and effective regulations to manage emerging challenges and promote responsible practices.
Building public trust and combating illegal gambling activities can be achieved by enhancing enforcement mechanisms and ensuring transparency in licensing processes.

Empowering individuals to make informed choices requires initiatives focused on raising public awareness about the risks associated with gambling and encouraging responsible practices.
Successfully navigating the intricacies of gambling in Goa, Daman & Diu demands a comprehensive approach that takes into account economic, social, and regulatory considerations. The effective implementation of the Public Gambling Act, coupled with proactive measures to address evolving challenges, is essential for establishing a sustainable and responsible gambling environment in these territories.

AUTHOR: DEVANSH BANSAL, SECOND YEAR LAW STUDENT AT SYMBIOSIS LAW SCHOOL, NAGPUR

References

1) The Goa, Daman and Diu Public Gambling Act, 1976, No 14, Acts of Parliament, 1976, (India)
2) Goa Public Gambling (Amendment) Act, 2021, No 14, Acts of Goa State legislature, 2021, (India)
3) Who Invented Gambling? A Brief History, Local Histories, (8th February 2024, 12:20 PM) https://localhistories.org/who-invented-gambling-a-brief-history.

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