TO BET OR NOT TO BET(LAW ASSIGNMENT)

-

INTRODUCTIONBetting or Gamblingis thewageringofmoneyor something of materialvalue(referred to as "the stakes") on aneventwith an uncertain outcome with the primary intent of winning additional money and/or material goods. Gambling thus requires three elements be present: consideration, chance and prize.Typically, the outcome of the wager is evident within a short period.The termgamingin this context typically refers to instances in which the activity has been specifically permitted bylaw. The two words are not mutually exclusive;i.e., a gaming company offers (legal) gambling activities to the publicand may be regulated by one of many gaming control boards, for example, theNevada Gaming Control Board. However, this distinction is not universally observed in the English-speaking world. Gambling is also a major international commercial activity, with the legal gambling market totaling an estimated $335 billion in 2009.In other forms, gambling can be conducted with materials which have a value, but are not real money. For example, players ofmarbles games might wager marbles, and likewise games ofPogsorMagic: The Gatheringcan be played with the collectible game pieces (respectively, small discs and trading cards) as stakes, resulting in ameta-gameregarding the value of a player's collection of pieces.

HistoryReligiousReligious perspectives on gambling have been mixed. AncientHindupoems like theGambler's Lamentand theMahabharatatestify to the popularity of gambling among ancient Indians. However, the textArthashastra(c. 4th century BCE) recommends taxation and control of gambling.Both theCatholicandJewishtraditions have even set aside days for gambling,(for JewsHanukkah), althoughreligiousauthorities generally disapprove of gambling. Ancient Jewish authorities frowned on gambling, even disqualifying professional gamblers from testifying in court.The Catholic Church holds the position that there is no moral impediment to gambling, so long as it is fair, all bettors have a reasonable chance of winning, there is no fraud involved, and the parties involved do not have actual knowledge of the outcome of the bet (unless they have disclosed this knowledge).Gambling has often been seen as havingsocial consequences. For these social and religious reasons, most legal jurisdictions limit gambling. Some Islamic nations prohibit gambling; most other countriesregulate it.

OriginsMany popular games played in modern casinos originate fromEuropeandChina.Games such ascraps,baccarat,roulette, andblackjackoriginate from different areas ofEurope. A version ofkeno, an ancient Chinese lottery game, is played in casinos around the world. In addition,pai gow poker, a hybrid betweenpai gowandpokeris also played.

Types of BettingFixed-odds bettingFixed-odds betting andParimutuel bettingfrequently occur at many types of sporting events, and political elections. In addition manybookmakersoffer fixed odds on a number of non-sports related outcomes, for example the direction and extent of movement of variousfinancial indices, the winner of televisioncompetitions such as electionresults.Interactiveprediction marketsalso offer trading on these outcomes, with "shares" of results trading on an open market.Parimutuel bettingOne of the most widespread forms of gambling involves betting onhorseorgreyhound racing. Wagering may take place throughparimutuelpools, or bookmakersmay take bets personally. Parimutuel wagers pay off at prices determined by support in the wagering pools, while bookmakers pay off either at the odds offered at the time of accepting the bet; or at the median odds offered by track bookmakers at the time the race started.Sports bettingBetting on team sports has become an importantservice industryin many countries. For example, millions of people play thefootball poolsevery week in theUnited Kingdom. In addition to organized sports betting, both legal and illegal, there are many side-betting games played by casual groups of spectators, such asNCAA Basketball TournamentBracket Pools,Super BowlSquares,Fantasy Sports Leagueswith monetary entry fees and winnings, and in-person spectator games likeMoundball.Arbitrage bettingArbitrage betting is a theoretically risk-free betting system in which every outcome of an event is bet upon so that a known profit will be made by the bettor upon completion of the event, regardless of the outcome. Arbitrage betting is a combination of the ancient art ofarbitragetrading and gambling, which has been made possible by the large numbers of bookmakers in the marketplace, creating occasional opportunities for arbitrage.Other types of bettingOne can also bet with another person that a statement is true or false, or that a specified event will happen (a "back bet") or will not happen (a "lay bet") within a specified time. This occurs in particular when two people have opposing but strongly held views on truth or events. Not only do the parties hope to gain from the bet, they place the bet also to demonstrate their certainty about the issue. Some means of determining the issue at stake must exist. Sometimes the amount bet remains nominal, demonstrating the outcome as one of principle rather than of financial importance.Betting exchangesallow consumers to both back and lay at odds of their choice. Similar in some ways to a stock exchange, a bettor may want to back a horse (hoping it will win) or lay a horse (hoping it will lose, effectively acting as bookmaker).

Betting in India Is a sport betting legal in India?Betting on sports is a grey area in India. The Honble Supreme Court of Indias judgment in an appeal on horse racing has held that betting on horse races is a game of skill as it involves judging the breed and form of the horse, form of the jockey, and the conditions amongst other factors. But there is no such judgment dealing squarely with betting in other sports.

Under whose jurisdiction laws are made on sports betting in India?The Constitution of India (Seventh Schedule, State List, Entry 34) gives states the right to create their own laws and policies regarding betting and gambling. Therefore the primary responsibility of regulating physical premises based betting and gambling is with the state. Most states have made laws prohibiting gambling but two states, Goa and Sikkim; have legalized many forms of betting and gambling. But when it comes to online betting the ambit of this Entry 34 becomes murky as legislations pertaining to Information Technology vests with the central government.Pre-independence there was no such distinction and the Public Gambling Act, 1867 governed betting and gambling in the country. Post independence some of the states have adopted this act and therefore this act is still valid for these states. Considering this situation the Central Government could also look at amending this Public Gambling Act and draft model rules under it which the state government could adopt.

What are the laws related to betting in India?On 1 August 2009 the State of Sikkim amended the Sikkim Online Gaming (Regulation) Rules 2009. This amendment made online sports betting in the state of Sikkim legal, subject to the operator holding a license.Some of other State laws are: the West Bengal Gambling and Prize Competitions Act, 1957, the Bombay Prevention of Gambling Act, 1887, the Madhya Bharat Gambling Acts, 1949, the Punjab Public Gambling Act, 1961, the UP Public Gambling Act, 1867, the Kerala Gambling Act, 1960, the Karnataka Gambling Law/Act, Goa, Daman and Diu Public Gambling Act, 1976, Sikkim Online Gaming (Regulation) Act, 2008, Madras City Police Act, 1888 to name a few.

What are the problems that arise from criminalization of unregulated sports betting?Problems that arise are: Lack of information on the gambling industry particularly because most of it is in the black market. There is no information on whether bookmakers are gambling with minors or those who have problems of addiction to gambling and so we can do nothing to combat check this threat to the society. There is no information on whether the punter who places bets with bookmakers is getting a fair deal or not. There is no accountability on the money flows through black market gambling. There is no way to monitor the pattern of bets being placed on a sporting event one of the key ways in which one can detect and prevent match fixing.There is a loss to exchequer which can derive tax revenue from the industry. It is estimated that Govt. can earn Rs. 12,000-Rs. 20,000 crores as taxes.In short, absence of independent regulator gives boost to criminal activities, is a threat to the society and leads to sporting frauds like match fixing. Regulating betting provides the framework to address all of these problems.

How can regulating gambling assist in the fight against match fixing?Legalizing and regulating sports betting might not completely solve the problem of fixing, it just makes it easier to track, investigate and catch anomalies as betting patterns can be monitored. At the same time it also limits the amount of money and opportunities available with the fixers to tilt the odds in their favour thus make fixing less lucrative. The focus of the police or the regulatory authority will also shift from a preventive action to regulatory action. It will be more of monitoring a business transaction like that of SEBI monitoring the share market.Under regulated betting, bookmakers will be required to keep proper records of the transactions that they are involved with and know the identity of those with whom they are betting which is the key to ensure that sports fraud is detected and dealt with. Tracking cash exchanges among betting agents will be easier and when theres a greater fear of getting caught which generally translates into lesser illegal activities such as fixing. In fact license holders will themselves ensure and create systems where sports fraud would be very difficult as their licenses can be revoked, or good will is affected if they are found flouting the rules. That process is possible only after legalizing and regulating betting.

If gambling is regulated wont match fixers criminals and unscrupulous bookies just carry on using the black market?We must understand why fixing is done. This is done to earn abnormal profits by managing outcomes. If one cant manage this outcome, he would not be able to earn abnormal profits. When sport betting is regulated, regulatory commission / nominee with the help of sports associations would define the rules regulation and type of betting not the fixer. Hence general public will prefer to bet on an officially recognized betting platform and will avoid route of illegal bookmakers, nobody wants to associate themselves with criminals. Moreover public will have incentives in placing bets with licensed operators. Therefore, as customers move towards the legitimate regulated industry the volume of betting and money moves away from the illegitimate industry it chokes the supply of liquidity to dishonest operators and thus reduction in sports fraud like match faxing.

But, how to control remote gambling?This is a difficult question. The problem is that the internet has fundamentally changed the marketplace for gambling. 20 years ago, gambling required the gambler and the operator to be physically proximate. Now, with penetration of mobile and internet devices and rapid developments in on-line payment mechanisms it is quite possible for a gambler in one country to place a bet with an operator on the other side of the world. Increasingly, Indians are placing bets in this way and this adds another dimension to the problem of regulation. But these problems are not insurmountable many jurisdictions in Europe and elsewhere in the world have found solutions to the regulation of international gambling, provided there is a proper framework.

Is betting morally wrong?Many people have strong feelings about gambling these views emanate from religious or moral views relating to human relationships and attitudes to money and so on. However, whilst we believe that it is perfectly legitimate for members of the public to have different moral views or personal preferences either in favour or against sport betting, it should probably be treated as morally neutral: something which lies between an entertainment and a financial service. Public should be given the respect and should have freedom of choice as to whether to bet or not, and ensuring that there exists a framework designed to protect the young and vulnerable and to ensure good law and order.

How is gambling regulation being dealt in other countries?Some countries (mostly those where there is a strong religious influence on the state) such as some states in the Middle East and South East Asia have taken the view that the role of government is to protect the public from what it sees as sinful behavior. Such states often impose a complete ban on gambling (and often, for example, severely restrict the consumption of alcohol also).At the other end of the spectrum, some governments view betting/gambling as an export industry, designed to drive trade and revenue creating tourism and employment. Examples include the US State of Nevada, the Island of Macau and some small island states where online gambling is licensed.Most countries, however, operate somewhere between these two extremes. States which licence gambling include the UK, many European states, Australia, and a number of States in the USA. In these countries, the Government seeks to provide a framework which permits gambling, but also seeks to regulate and control gambling (and takes a share of profit in terms of tax, either as part of general fiscal revenue or directed towards particular social issues (including for example the funding of the industry itself, sports or cultural and charitable causes).

What are the features of most regulatory systems for gambling?Most countries that have permitted gambling/ Betting have statutory regulatory bodies/ gambling commissions created by the state which is responsible for distributing licenses to betting operators. The regulatory body will have an important role in examining license applications from third parties.The national regulatory body (a body at the central level) could regulate disputes, where violation/breach involves more than one states jurisdiction. These could be power to void a particular bet, power to prosecute or seek cooperation between states as well formulating guidelines and dispensing information to the public about betting including listing events on which bets can be placed. National regulator may have state level chapters.The regulator will have powers of entry and inspection into operators premises and online networks and to have co-operation from operators. Where problems are detected, the regulator will have powers to impose conditions on operators, together with a range of regulatory remedies from warnings to financial penalties removal or suspension of a license and even criminal prosecution.

What are the advantages of regulating sports betting?The greatest advantage of regulating sports betting is going to be the accountability for the large amounts of money transferred through illegal channels and reduction in cases of match fixing, money laundering and crimes, creating knowledge and education about ill effects in a focused manner are inbuilt conditions to save vulnerable groups. Besides, it could potentially fund sports development, education, social protection or welfare schemes and infrastructure development plan besides employment generation.

THE BIG QUESTIONS IN A COUNTRY LIKE INDIA, WHERE CRICKET IS NO LESS THAN A RELIGION, SHOULD BETTING IN CRICKET BE LEGALISED?In the fall-out of all the controversies surrounding the Indian Premier League, a burning debate has ensued, and at the centre of the debate is about legalizing betting in cricket.The question arises: Should or shouldnt cricket be legalized?In India, betting is only legal in horse-racing and rummy, both considered sports that require skill. This can be used as an argument in favour of legalizing betting in cricket.Although many believe that the current mess in cricket can be cleaned to a large extent if betting is legalized, police officers of various states are against this.Also, legal experts point out that the onus is upon the state governments to legalize cricket betting and at the moment none of the governments is really in favour of the same.So why are police and governments against legalizing betting?For starters, cricket has an audience which is 1000 times larger when compared to horse-racing or rummy.Bets will be placed in large numbers even by youngsters -- college-goers, etc -- which will automatically raise the stakes and, in turn, tempt bookies to try and fix matches.Police officers say it would become a situation that will spiral out of control.Legalizing betting in cricket would need a judicial review too, and, as of now there are no judgments to suggest that cricket betting requires skill.The Supreme Court has been very clear on this matter and says that a bet could be legalized only if there is a skill involved.Two very crucial judgments delivered by the Supreme Court of India in 1996 and 1967 explain when betting can be legal and when it cannot.A judgment passed in the State Of Andhra Pradesh vs. K Satyanarayana & Ors case, in 1967, dealt with subject of whether rummy was a game of chance or not.The Supreme Court held that rummy was not a game entirely of chance like the 'three-card' game. The 'three-card' game which goes under different names such as 'flush', 'brag' etc is a game of pure chance.Rummy, on the other hand, requires a 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. It cant, therefore, be said that rummy is entirely a game of chance. It is mainly and preponderantly a game of skill. The chance in rummy is of the same character as the chance in a deal at a game of bridge, the court said.In fact, in all card games there is an element of chance, because the distribution of the cards is not according to any set pattern but is dependent upon how the cards find their place in the shuffled pack. From this alone it cannot be said that rummy is a game of chance and there is no skill involved in it.In the Dr K R Lakshmanan vs. State of Tamil Nadu, the subject under question was horse-racing. In this case the Supreme Court held that racing is really a test of equine speed and stamina. The horses are trained to run and their form is constantly watched by experts.'Betting on horse-racing or athletic contests involves the assessment of a contestants physical capacity and the use of other evaluative skills.'Horse-racing is an organised institution. Apart from a sport, it has become a huge public entertainment business.'According toThe New Encyclopedia Britannicathe occasion of certain races are recorded as public holiday. There is nothing illegal in horse racing: it is a lawful sport. There is nothing illegal in betting per se. There is all the difference in the world between a club sweepstakes on the result of the Derby and a sweepstakes horse race as defined in the Rules of Racing. In each, no doubt, the winner is ascertained by the result of an uncertain event, but in the case of the former the winner is ascertained by chance, i.e., the luck of the draw not the result of the race (for the result is the same whether the draw is made before or after the race); in the case of the latter the winner is ascertained not by chance, but by merit of performance.'The former is a lottery; the latter is not, the court said. 'We have no hesitation in reaching the conclusion that the horse-racing is a sport which primarily depends on the special ability acquired by training. It is the speed and stamina of the horse, acquired by training, which matters. Jockeys are experts in the art of riding. Between two equally fast horses, a better trained jockey can touch the winning-post.'Legal experts and police officials say that it is relatively easier to control the betting syndicate when the stake-holders are small in number. In the case of cricket it is difficult, considering the game is extremely popular among all age groups and has a very large audience.In the case of horse-racing, the state legislatures have taken a call that it may be permitted for recreation and entertainment in race-courses.However, the police feel that in the case of cricket, while it can be ensured that betting will take place only for recreation purposes, the bigger problem is of fixing, since the stakes are extremely high, and this is something that could blow out of control.Betting should be legalized. RETD. JUSTICE MUKUL MUDGAL(THE MUDGAL COMMITTEE REPORT)

HORSE RACING - IS IT ACTUALLY A HARMLESS SPORT OF SKILL..?We have no hesitation in reaching the conclusion that horse racing is a sport which primarily depends on the special ability acquired by training. -THE SUPREME COURT OF INDIA (Dr. K.R. Lakshmanan vs. the State of Tamil Nadu, 1996)

THE HORSE RACING INDUSTRY DRUGS, DECEPTION & DEATHMost people regard horse racing as a harmless sport in which the animals are willing participants who thoroughly enjoy the thrill. The truth is that, behind the scenes, lies a story of immense suffering.Approximately 18,000 foals are born into the closely-related British and Irish racing industries each year, yet only around 40% go on to become racers. Those horses who do not make the grade may be slaughtered for meat or repeatedly change hands in a downward spiral of neglect. Of those horses who do go on to race, around 400 are raced to death every year.The survivors are denied their freedom and pushed to their limits to serve the financial interests of trainers, owners and bookies. Because they are bred for speed, not strength, many sustain limb and other injuries and are shot.Ongoing researches into equine fatalities revealed that over 400 horses are raced to death every year and thousands of commercial failures are disposed of.It is also common for horses to develop serious racing-related illnesses such as bleeding lungs and gastric ulcers. Whilst performing, they are whipped in an attempt to spur them on, which is painful and makes them fearful and distracted. In fact, the more a horse is whipped, the less likely he or she is to win the race.Investigations have revealed other horrors behind the scenes. The top breeding stallions are over-worked and kept isolated for years from other horses. Breeding females are subjected to an endless cycle of pregnancy that often involves the use of drugs and other artificial interventions.Every year, horses are injured and killed in the Grand National - a deliberately hazardous race in which most horses do not even finish. Beneath its glamorous faade, commercial horse racing is a ruthless industry motivated by financial gain and prestige where even the government enjoys their own share in the form of high taxes.Cruelty? You can bet on it!*******