A recent PIL wants this business to be regulated so that genuine players can indulge in a sport from which even the government can earn good revenue
~By Sujit Bhar
The Supreme Court in a judgment in January 1996 had observed that there was nothing illegal about horse racing. It had said: “Horse racing is an organised institution. Apart from a sport, it has become a huge public entertainment business… There is nothing illegal in horse racing: it is a lawful sport. There is nothing illegal in betting per se…”
This judgment could well serve as a benchmark for any decision the Court could take while deciding betting in sports. A recent PIL wanted it to give directions to the government regarding making such betting legal. Appearing for the petitioner, senior advocate RS Suri and lawyer Reepak Kansal stated: “Regulation of betting would enable the government to distinguish between harmless betting and corrupt activities like match-fixing. The total betting market (in India) is Rs 3 lakh crore.
“Regulating the existing system will weed out the undesirable elements in the betting business and will bring more credible and genuine players over whom the government can have more control,” they said.
Rules regarding betting vary from state to state and as far as horse racing goes, many have amended their laws. Goa, Sikkim and the Union Territory of Daman have amended their acts to allow casinos too. However, betting in other sports is illegal.
Betting in cricket is the most common and infamous. There were allegations of widespread spot betting in the Indian Premier League in which three key players were involved. It eventually led to pace bowler S Sreesanth being banned for aiding bookies. Apart from tapes of phone conversations between players and bookies, one signal, especially of Sreesanth, came to the forefront. Whenever he would bowl a delivery wanted by the bookies, he would have a handkerchief tucked into his waist, it was claimed.
The Public Gambling Act, 1867
The Lotteries (Regulation) Act, 1998
Section 294-A of the IPC, 1860
Section 30 of the Indian Contract Act, 1872
State legislations such as Bengal Public Gambling Act, 1867; Bombay Prevention of Gambling Act, 1887; Delhi Public Gambling Act, 1955: Madras Gambling Act
While this was no conclusive proof that he was directly involved in betting, the Anti-Corruption Unit of the ICC and its Indian counterpart, along with the Delhi Police presented circumstantial evidence to nail him and impose a life ban from the BCCI. Though the weak circumstantial evidence resulted in Sreesanth being exonerated by a criminal court, the BCCI hasn’t lifted the life ban slapped on him.
Coming to the recent PIL, the very fact that the apex court bench of Justices Dipak Misra and AM Khanwilkar agreed to hear it, is proof enough that there is a case for legalising betting in sport. Apart from the financial angle—petitioners say that the government could possibly earn a huge revenue to the tune of around Rs 12,000 crore by taxing betting earnings—this would also help to stop all illegal betting centres and sites.
Incidentally, betting in sports is legal in England. Registered bookies collect bets before a cricket match and the odds keep changing throughout the day. This has ensured that players don’t rig a match as the public betting pool is diverse and not in any group’s control. Even football matches can be bet upon.
In India, betting in horse racing is allowed and states have laws allowing it in a specified format and with licenced bookmakers. This is especially so in Andhra Pradesh, Assam, Delhi, Karnataka, Meghalaya, Tamil Nadu, Maharashtra and West Bengal. Maharashtra, for example, has these exemptions written into the Bombay Race Courses Licencing Act, 1912, while West Bengal has them in the West Bengal Gambling Rules, 1958.
Though lotteries are banned in many states, they are allowed in 13 others and are popular. They (eg Lotto) offer huge first prizes that sometimes run into crores. However, paradoxically, there is no legal backing for the winner if the agency does not give him the prize.
Section 30 of the Indian Contract Act, 1872, stops one from filing a recovery suit for any money one may have won through a “wager” or a bet. The logic is that as this money was won through a lottery or bet where winning is uncertain, there is no need for a law on it.
Revenue earned by the government from horse racing is substantial and legal as there is a provision for this in the Income Tax Act for such earnings. Section 115BB states that tax for winning from all forms of betting, wagering activities, lotteries, contests or horse-racing will be 30 percent. There are other taxes included too, thereby boosting revenues. Even the Seventh Schedule of the constitution gives power to the Union government to make laws for lotteries.
This is a quick and safe way of mopping up money from the market.