INDIA

Private member’s bill sparks online gambling debate

A private member’s bill recently introduced in parliament is expected to give fresh impetus to the debate on legalizing online gaming and sports betting in India, potentially unlocking one of the world’s largest sports betting markets.

The bill was introduced by politician Shashi Tharoor, who belongs to the main Indian National Congress opposition party.

According to experts, including legal practitioners who have studied it closely, the bill is well timed and could be an important step towards legalising or regulating betting and gambling activities in India.

Based on the recommendations of the Justice Chauhan Commission report last year, the bill proposes the establishment of an overarching body to regulate online gaming and sports betting in India. It criminalises sports fraud, including match-fixing and aims to put a check on the flourishing online gaming market in India, which is operating mostly in a legal grey zone as the central government has not made any laws for its regulation.

The Supreme Court is yet to give a decisive verdict on the subject, although state-based High Courts have handed down decisions that have legalised some online activities.

In Kolkata, for example, poker is legal and poker websites such as Adda52 have established offices there, while Sikkim, a mountainous state in the north-east of India, has a separate law for online gambling and sports betting.

“While a private member’s bill has a slim chance of being accepted as law by the parliament as it is not backed by the party to which the said member of parliament belongs, it often leads to debates in the house, as well as in the media and other public forums. The bill has lapsed as the parliament is not going to have more sessions. But it can be reintroduced when it convenes again,” said Tanisha Khanna, a lawyer with Nishith Desai associates, a Mumbai-based law firm that looks closely into gambling-related issues.

It will be good if the debate continues in parliament.

The Indian Parliament is expected to reconvene after general elections in May this year.

Roland Landers, who heads the All India Gaming Federation, which is working on creating awareness about gambling in India, welcomed the bill. He said the organisation would take it up with Mr Tharoor to ensure the bill gets re-introduced.

“It will be good if the debate continues in parliament. This will help MPs get an understanding of the issue.”

“The debate on the bill will help MPs know that a lot of revenue is lost due to the gambling being illegal in the country. Some of this money is also laundered and ends up financing terror activities. This can be checked with legalisation,” he said.

Speaking to AGB, Ranjana Adhikari, a lawyer also with Nishith Desai, said that such a debate would be beneficial for the sector and that it has already started with the report of the Law Commission headed by retired Justice Chauhan.

As a fast-growing and relatively new sector in India, Adhikari argues that the central government should be the one to draw up regulations. At present, under the Indian Constitution, individual states are responsible for legislation on land-based gambling.

“The central government has been focusing on the digital India campaign so they can consider it too.”

On the issue of sports betting overall, Adhikari said that it was a game of skill on which bets are made, similar to poker or rummy that are very popular in India. “Horse racing is legal in India and it involves placing bets on what is considered a game of skill. Likewise, cricket for example is also a game of skill and so it should be legal to place bets on the outcomes of cricket matches.”

According to Adhikari and Khanna, the issue remains a moral one.

Meghalaya mulls casinos

State officials from Meghalaya, a state located in the North East of India, are cautiously exploring the idea of opening a casino in the region, The Shillong Times reports.

Sources in the Secretariat said that political leaders are keen to see a casino open up, likely at the Byrnihat in Ri Bhoi district. However, the officials added they wanted to move slowly on the matter because of the morality factor. It is understood that although the idea is only in the planning stage, related departments have already begun working on it.

The government would be looking for a casino model along the lines of Nepal and Sikkim, where locals would be forbidden to enter.

Betfair stops Indian business

Betfair stopped accepting players from India effective 28th January, 2019, G.Laws reported. In an email sent to its Indian users, the online company further asked users to manage any open positions and withdraw any funds in advance of 28th January.

Betfair in its communique to users did not specify the reasons as to why it was suddenly ceasing all India operations. The Betfair.com website when accessed from India does not allow bets to be placed and gives the following message on its homepage: “Our Software detects that you may be accessing the Betfair website from a country that Betfair does not accept bets from.

If you believe that this detection has occurred in error, please Contact us for further assistance.”