Landmark Court Cases And Their Influence On The Online Casino Industry In India

Akil Khan
by Akil Khan
August 11, 2023

The Indian gambling system has come a long way; certain states allow gambling while others do not. Still, a few states allow punters in a land-based casino. Rummy and poker games can be played online. It's seen that the casino industry in the country has come a long way, but there are a few socio-economic concerns that still make gambling a 'lackluster activity.' 

  • Use of harm to children and outrage among adults

  • Gambling activities leading to financial losses

  • Violent or inappropriate content without any concrete measures

  • No security to secure the users' money

  • Offshore gambling sites targeting Indian users

Online gambling activities started with humble beginnings, but the modernization and creeping of technology led to varied options for players. We must tell you that responsible gambling is still a concern for the Indian government. Of course, the legal authorities do not allow people to act like 'emotional fools.'

Legal Cases And Their Influence

Legal cases in India are rising related to the casino industry. These cases show how a few punters cannot escape gambling-related emotions. Few families reported how their hard-earned cash was used for gambling by their family members. Let us walk you through a few cases to give you a better glimpse. 

RMD Chamarbaugwala v/s Union of India Case 1957 

In this case, the Supreme Court stated the game of chance and the game of skill. The upshot was that every gambling game involves certain skills, including chances. However, it was stated by the court that the games that include skill would not be considered gambling. The definition of skill games provided was that the games that involve a certain level of skill for achieving success are not rated as gambling. 

There is always an element of chance where the game is 'preponderantly' the game of skill, then, it would never remain as the game of skill only. So, the ruling upheld that the games of skill are not part of gambling and will not be prohibited. 

State of Andhra Pradesh v/s K. Satyanarayana, 1967

This case involves differentiating rummy from the 'three card game' and recognizing the game as the 'game of skill.' It is not defined as a game of chance, irrespective of the format, stakes, and venue involved. However, a few state enactments still exist that rule over India's Gambling Act 1867. Moreover, the Assam Game and Betting Act of 1970, Telangana State Gaming (Amendment) Ordinance, Orissa Prevention of Gambling Act 1955, and the High Court Judgement of Gujarat in 2017 refute that casino games with the cash stakes do not make the exception for the rounds of ability. 

After this verdict, the punters from Gujarat, Odisha, Assam, Telangana, and Sikkim are prohibited from playing.

Dr. K.R. Lakshmanan v/s State of Tamil Nadu, 1996 

The reason why horse betting is not prohibited, and other types of gambling activities are stated to be illegal was discussed in this landmark case. The Supreme Court stated that horse betting is based on skill, so it does not come under gambling. The 3-bench judge stated that the horse's winning in the horse race is not always dependent on chance. It depends on other factors like training received by the jockey and horse, the nature of the race, the pedigree provided to the horse, the health of the horse, and much more. This removes the illegality associated with horse racing and makes its position legal. 

All these cases show the influence of casino gambling based on skill and why casino games based on skill are prohibited from getting banned. The ban on skill-based games in the states like Karnataka, Tamil Nadu, Andhra Pradesh, and the State of Telangana made the casino game ban highly unconstitutional.

The case of K.R. Lakshmanan v/s Tamil Nadu state upholds that skill games differ from the game of chance. So, the court stated that players have the right to exploit their skills and make earnings from those skills. The ban was cited as unconstitutional and was stated to allow the gambling of games with reasonable restrictions.

Legal Cases And Their Influence

Present Standing On The Legal Proceedings Regarding Gambling

These landmark court cases showed how the game of skill is allowed and is not punishable too. However, the game of chance may still not be allowed in the casinos. The punters have to exercise certain restrictions, especially when playing casino games. It was to save their family from unseen losses. Moreover, the case of a Madhya Pradesh man who took out money from his grandfather's pension account made headlines. He played online satta or bet on the IPL. He was bailed on the pretext that he had to deposit 50% in the account of his grandfather. 

It shows how lucrative gambling games can lure people. To curb this gambling menace, the court orders certain land-based and online casino restrictions. You have to take care when playing casino games. Do not become an 'emotional fool' as we stated earlier. You have to weigh the pros and cons of the casino gameplay. Fantasy Sports, Rummy, and Poker are exempted in certain states, along with Horse Race betting.  

The only stand of the legal courts is that no one should suffer because of gambling. People must play them for entertainment and fun. It must be like exercising your skill and not putting all your money into gambling.

The Internet has become an essence of gambling because it is available like a free doughnut with every restaurant meal. Gamblers must check out the basic terms and conditions of the online casinos. They must also ensure that their state accepts a particular casino game under the legal aspects. You can always read the expert views and comments on the gambling situation in India before taking off casino gaming. It will help you to game carefully and legally.

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