Navigating the legality surrounding gambling and betting in India is full of confusion and uncertainty for the average citizen. What is legal or illegal Gambling is subject to the interpretation of authorities and law enforcement officials. While one might engage in online gaming platforms under the guise of skill-based games without repercussions, the same cannot be said for a friendly game of cards during a festive occasion like Diwali or a generic pooled bet among friends on the election results. Even betting among close friends can teeter on the edge of legality unless certain precautions are taken, further complicated by different interpretations and rules at central and state levels.
THE IDEA OF SOCIAL BETTING ON LOTUS.
Recently, during the batch reunion in Jaipur, discussions naturally covered the upcoming 2024 elections and possible outcomes. Like any other group of elders, everyone had their own interpretation of the current geopolitical situation and, hence, polarised outcomes. These predictions were based on informed analysis, akin to a game of skill.
The idea of a closed-group betting pool emerged to add excitement to the discussion. Participants would predict the number of seats the BJP would secure under the Lotus Symbol and contribute a nominal amount, with one person designated as the BetMaster. The individual closest to the actual result would claim the pooled amount.
Confidentiality and transparency were built into the process. The last date for predicting and betting was the eve of the first polling date. The predictions were only known to BetMaster and made public a day after the first polling date. The participant could change the prediction once before closing the entries.
Despite the transparent and confidential nature of the arrangement, a crucial question loomed: Was it legal? Despite being a mere 10,000 collective possible wagers in a 60 billion industry ( estimate of 2010), we were too educated not to intellectualise the possible scenario.
RISKY SOCIAL BETTING.
This inquiry into the subject over digital checks and a few discussions led to a sobering realisation. While the friendly betting endeavour seemed innocuous, it could potentially run afoul of gambling laws in India. One could be fined INR 200 or imprisoned for 3 months. The mere possibility of legal repercussions, including fines and imprisonment, cast a shadow over what was intended as harmless fun among friends.
Betting is the act of putting at stake a wagering amount (a valuable or liquid cash) on the prediction of the occurrence or non-occurrence of an event.
GAMBLING IN INDIA.
Gambling is strictly prohibited in India under the antiquated Public Gambling Act of 1867, a relic from the pre-independence era. Despite its age, its enforcement varies significantly across states, leading to a patchwork of interpretations. While the Act overlooks online betting, several states have enacted specific laws against it.
Interestingly, gaming platforms have successfully argued in courts that their activities constitute skill-based games.
Now, consider predicting election outcomes. It does require intricate knowledge and analysis akin to strategic skill. Yet, despite the parallels with skill-based activities like exit polls, this entertaining pooled betting among friends could be illegal.
Under the Public Gaming Act of 1867, anyone caught gambling with cards, dice, or counters faces potential imprisonment and fines as per Section 45 of the Indian Penal Code of 1860.
GAME OF SKILL VS CHANCE.
The legislative definition of a game of skill is one in which the element of skill predominates over the element of chance, including when the skill relates to strategising the manner of placing wagers or bets, when the skill lies in team selection or selection of virtual stocks based on analyses, or when the skill relates to the manner in which the moves are made, whether through deployment of physical or mental skill and acumen.
Based on this, many states consider rummy, bridge, golf, chess, poker, darts, and carom games to be games of skill. The gaming platforms have somehow convinced the judiciary that they are more a game of skill than of chance.
If we were to fight, we could always prove that predicting election results requires a deep understanding of the geopolitical situation, processes, and ground reality—definitely, it is a game of skill. But then we wouldn’t have the energy and width to do so. We want easy clarity.
AMBIQUITY IN GAMBLING.
The ambiguity surrounding the legality of such simple, friendly social betting reflects broader inconsistencies within India’s gambling laws. Moreover, this is the case of educated professionals who have held positions of responsibility and repute.
While online platforms exploit legal loopholes to operate as skill-based games, traditional forms of betting face stricter scrutiny, even within private circles.
Social Betting- NOT A COMPETITION.
This pooling syndicate on election results could be considered a competition where the prize is offered for solving a puzzle, number, alphabet, crossword, missing word, or picture prize.
Elections are one of the biggest puzzles of complex caste divides, manifesto statements, political inclinations, etc. However, with a prize of more than INR 1000, it ran foul of the Prize Competition Act of 1955, which bans a prize of more than INR 1000.
Our prize money would have been 10,000 INR, a small sum in a 60 billion betting industry (2010 estimate), but beyond the Competition Act.
Social betting- NOT A LOTTERY.
Yes, in our scheme, typically, every participant predicted a number; in a way, he or she was buying a number that he or she believes has the most chance of coming when the results were declared. Now, does that make it within the Lottery Act?
The lottery is defined in the Lotteries (Regulation) Act 1998 under Section 2(b): ‘lottery’ means a scheme, in whatever form and by whatever name called, for the distribution of prizes by lot or chance to those persons participating in the chance of a prize by purchasing tickets.
So, our simple, transparent, innocuous betting could be against the Gambling, Competition, and Lottery Act! The group had to stop looking at further running the closed group syndicate for the IPL winner, the Purple and orange cap winner, and the US Presidential race.
SOCIAL BETTING STIFLED.
Social betting among friends typically centred around sports or elections, is common in India. These informal wagers, characterised by low stakes and camaraderie, rarely attract legal intervention. However, the possibility of legal consequences looms over such activities, deterring individuals from fully embracing harmless social traditions. This prevents more of the educated class than the masses.
GOVERNMENT CONCERN WITH BETTING.
The reluctance to legalise betting stems from moral and societal concerns, with gambling viewed as a vice associated with addiction and financial ruin. Yet, the distinction between games of skill and chance remains murky, leaving room for interpretation and enforcement discrepancies. One feels frustrated when online betting and gambling continue under the name of skill. On the other side, social gambling is under the scanner.
The lack of clarity surrounding social betting perpetuates uncertainty and stifles harmless recreational activities. As the government grapples with defining and regulating gambling, it’s imperative to provide clear guidelines distinguishing between harmless social engagements and illicit gambling practices.
NET NET
The ambiguity surrounding gambling laws in India continues to confuse citizens and authorities alike. The absence of clear regulations leaves individuals hesitant to engage in harmless social activities like friendly betting pools. As we await clarity from policymakers, the question remains: can friends gather for a friendly wager without running afoul of the law? And is Kitty Parties, which are also a pooled lottery, legal? Until then, the legality of social betting in India remains a puzzle waiting to be solved.
UNRESOLVED QUESTION.
After all this reading and referencing, it is still to be determined if a closed group of people on WhatsApp can bet for entertainment with the least wager that would not financially ruin them.
If someone has an answer, I would like to know about this election result predicting small wager betting among friends and about the Diwali teen patti among friends and relatives.
And if it is OKAY- I still have time to set the betting among friends.
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