SPORTS BETTING REGULATIONS AND ENFORCEMENT

ABSTRACT

This article explores the growing concerns surrounding sports betting and its enforcement and regulations methods. This article also examines the outdated legal framework, increase in number of unregulated online platforms and the psychological impact of these activities on individuals and society. The article evaluates key judicial decisions such as D.R. K.R. Lakshmanan v. State of Tamil Nadu and State of Andhra Pradesh v. K. Satyanarayana, while advocating for stronger enforcement mechanisms. Subsequently, article focuses on growing trends in sports betting and related activities in India and it concludes by emphasizing the urgency of clear regulations to curb illegal activities and protect vulnerable individuals from gambling’s adverse effects.

KEYWORDS

Online Betting, Licensing, Black Market Betting, Regulatory Challenges, Sports Integrity, Consumer Protection, Taxation in Sports Betting, Legalization and Prohibition, Fantasy gaming.

INTRODUCTION

Sports betting is one of the fastest growing multi-billion-dollar industry in the world. It is valued at over $83 billion in 2022 and is expected to reach $182 billion by 2030.[1] The credit for the unprecedented rate growth of sports betting industry goes to the online platforms which are growing at a faster rate due to technological advancements. This rapid growth underscores the need for a robust legal framework to regulate this an ever-growing industry.

Sports betting is the act of making predictions about the results of sports events and staking a wager on what the outcome will be. Sports betting is considered to be a form of gambling. As in sports betting, there is always an element of chance combined with the risk involved thus placing it in the category of gambling activities. But regarding sports betting, different states have their different laws regulating the sports betting events.

The concept of betting is not new to Indian society, several ancient and mythological scriptures mention about the gambling and betting. Dice games like Chaupar and Pachisi were integral parts of society, with references found in texts like the Mahabharata, where the Pandavas lost everything in a game of dice, reflecting its negative consequences. The mythological story of Nala and Damyanti, depicts the existence of gambling in Ancient India. Under British rule in 1777 horse racing was introduced in India and betting became more widespread, especially in cricket. As gambling-related crimes spread across different parts of the country, the British introduced the Public Gambling Act of 1867 to regulate these activities.

However, the Public Gambling Act of 1867 has become less effective in regulating modern sports betting and gambling due to advancements in technology, the rise of online betting platforms, and the differing gambling laws across states. The attitude of society toward gambling and betting has varied across time and geography nowadays these activities are less taboo in society. Today, the legal framework for sports betting in India is fragmented and operates in a grey area, highlighting the need for reforms to tackle these issues.

DEFINITIONS AND CHARACTERISTICS OF SPORTS BETTING

According to the Oxford English Dictionary,[2]

“Betting can be defined as an action of gambling money on the outcome of a race, game, or other unpredictable event”

The definition of “gambling” as defined in black law dictionary [3]

“the act of risking something of value for a chance to win a prize”

The Finance Act 1994 defined betting or gambling under section 65-B(15) as: [4]

Means putting on stake something of value, particularly money, with consciousness of risk and hope of gain on the outcome of a game or a contest, whose result may be determined by chance or accident, or on the likelihood of anything occurring or not occurring.

Difference between Gambling and Betting

Betting is considered to be a form of gambling. The main difference between the two activities is that in gambling, the wager or stakes are placed on an event without any prior knowledge or basis for predicting the outcome. On the other hand, in betting, the stakes are placed with some idea or understanding of the event’s performance or potential outcome.

From long time the idea of ‘easy money’ excites men therefore drawing them into addictive practices.

THE CHARACTERISTICS OF SPORTS BETTING ARE

In sports betting there is always an element of Uncertainty because betting is a form of prediction on the outcome of the sporting event. A sports bet involves financial risk. For instance, if due to luck one person wins in the first round of betting then in second round, he may take much bigger risk in the hope of winning something big in return thus risking his money or other any valuable asset. Supporters of Sports betting often argue about the nature of activity as they firmly believe that sports betting is not based on the chance, but person makes bet on the sporting events using their skill. So, it can not be categorized as gambling. There is no denying that sports betting is a vicious cycle of addiction. If one person becomes habitual of these kinds of activity, then there is no going back.

LEGAL FRAMEWORK FOR SPORTS BETTING IN INDIA

The Public gambling act 1867[5]. Was introduced by British on 25 January 1867 to curb gambling and other related activities. The key provisions of the act includes:-

Section 3 prohibits the operation of gaming house without licence[6],
Section 4 defines and penalizes those found in a gaming house [7],
Section 5 imposes penalties on anyone owning or keeping a gaming house [8],
Section 6 empowers police officers to enter and search gaming houses[9],
Section 7: Provides for the forfeiture of gambling instruments.[10],
Section 12: Penalizes individuals who encourage or participate in unlawful gambling.[11],
Section 13: Imposes penalties for maintaining gaming houses in specific areas.[12],

Limitations and relevancy of the Act

This act [13] is one of the oldest legislations which was enacted by Britishers nearly 178 years ago and now this act has become vague and outdated. Also, this act does not provide any explicit definition of gambling which makes it difficult to decide what constitute gambling and what does not Nor, this act defines games of skill or games of chance leaving it on the Indian judiciary to decide from case to case. After independence the gambling was inserted in entry 34,list ll of the seventh schedule of Indian Constitution. As a result, states in India have power to make laws on gambling thus giving birth to inconsistent laws across whole nation. Moreover, this act does not cater to the need of modern society as it fails to address challenges posed by technological advancements for instance, online betting and gambling platforms.

Furthermore, the gambling houses were banned, but people had found alternatives after the gambling houses were shut. Gambling was shown in a form of game or a prize competition and the winner will get a prize but underneath they were running gambling houses & such cases in India increased, then government introduced Prize Competition Act 1955 [14]to curb these activities. With this Prize competitions requires a valid license and there were penalties for violation. This principle could be applied to sports betting as well in order to curb the unregulated platforms and to ensure fairness, but sports betting still operates in grey area in India. In addition, the Indian Contract Act 1872 also plays a vital role as Section 23 of the Contract Act, states that “the consideration or object of an agreement is lawful, unless – it is Forbidden by law; or is of such a nature that, if permitted it would defeat the provisions of any law”. This paves the way for section 30[15] which states that agreement by way of wager is “void and unenforceable, but at the same time it is not forbidden by law and hence, cannot be termed illegal.” As a result, no legal action can be taken to claim winnings from a bet or gamble. An exception to this rule is made for horse-racing bets, which are legally allowed under the Contract Act.

Additionally, the Information Technology (Intermediaries Guidelines) Rules,2011 (Intermediaries Rules)[16]– which have been framed under Section 87(2)(zg) read with Section 79(2) the Information Technology Act, 2000. Rule 3(2)(b) thereof requires ‘intermediaries’ like internet service providers, network service providers, search engines, telecom operators etc. not to host or transmit any content which inter alia relates to or encourages gambling. Further, Rule 3(4) requires intermediaries to remove content relating to or encouraging gambling within thirty-six Hours, either “upon receiving actual knowledge or on being notified to do so by the appropriate government or its agency that any information, data or communication link residing in or Connected to a computer resource controlled by the intermediary is being used to commit the unlawful act…”

Notably, The Consumer Protection Act,1986[17] Section 2(1)® of the Consumer Protection Act, 1986, defines “unfair trade practice” as any trade practice that uses unfair or deceptive methods to promote the sale, use, or supply of goods or services. Section 2(1)®(3)(b) specifically includes contests, lotteries, or games of chance or skill conducted to promote the sale or business interests of any product or service within the scope of unfair trade practices. If contests, lotteries, or games of chance or skill are used to promote betting or gambling activities, these promotional methods—not the betting or gambling activities themselves—are deemed unfair trade practices and fall under Sections 6 and 14 of the Act. For example, a lucky draw offering free credits at a casino would be considered an unfair trade practice. Moreover, the Doctrine of res extra commercium which means “things outside commerce” seeks to exclude certain activities from the ambit of freedom of trade and profession guaranteed under Articles 19(1)(g) and 301 of the

Constitution of India. In State of Bombay v. RMD Chamarbaugwalla[18], the Apex Court observed that:

“We find it difficult to persuade ourselves that gambling was ever intended to form any part of this ancient countries’ trade commerce or intercourse to be declared as free under Article 301… the real purpose of Articles 19(1)(g) and 301 could not possibly have been to guarantee or declare the freedom of gambling. Gambling activities from their very nature and essence are extra commercium though the external forms, formalities and instruments of trade maybe employed and they are not protected either by Article 19(1)(g) or Article 301 of the Constitution.”

Which means the activities like betting and gambling are not protected under article 19(1)(g) of the Indian Constitution which guarantees right the right to practice any profession or to carry on any occupation, trade or business.

Also, under The Lotteries (Regulation) Act, 1998[19] – Lotteries are governed by Entry 40 of List I (Union List) in the Seventh Schedule of the Constitution of India, making them a subject under the jurisdiction of the Central Government. Accordingly, they have been excluded from the ambit of betting and gambling. The Lotteries (Regulation) Act, 1998, specifies the conditions under which State Governments can organize lotteries. These conditions include that the draw must take place within the state organizing the lottery, and as per Section 4, the proceeds from ticket sales must go to the state treasury. Section 5 of the act gives state government right to conduct lotteries within their state, while prohibiting the sale of their lottery tickets in other states.

STATE-SPECIFIC LEGISLATIONS

The Government of India Act, 1935 listed all the matters related to betting and gambling under Entry 36 of the List ll (Provincial Legislative List) Further, the Constitution of India adopted the same criteria and listed it in Entry 34 of List ll of Seventh schedule of Indian Constitution and Entry 62 of the state list confers upon the state legislatures the power to make laws pertaining to taxation on betting and gambling. The 14 states and union territories have adopted the Public Gambling Act 1867 as it is For instance, Punjab, Himachal Pradesh, Haryana, Madhya Pradesh, Chhattisgarh, Arunachal Pradesh, Chandigarh and others.

While states like Maharashtra[20], Andhra Pradesh[21], Delhi[22], Gujarat[23], Meghalaya[24], Jammu and Kashmir[25] and Goa[26] have enacted their own laws to regulate the betting and gambling in their states.

Act for regulating online gambling

The Sikkim online gambling (regulation) Act, 2008[27] is the first Indian legislation to expressly permit and regulate online gambling. The Sikkim Online Gaming (Regulation) Rules, 2009 are framed under section 23 of the 2008 Act. Rule 3 of these Rules, read with the Sikkim Online Gaming (Regulation) Amendment Act, 2009, provides that the following games may be operated and played under a licence obtained from the State Government like Poker Dice, Bingo, Casino Brag, Black Jack, Keno, Super Pan 9 and others.

OTHER EFFORTS

The Sports Online Gaming and Prevention of Fraud Bill, 2018[28] was introduced in Lok Sabha with an objective to prevent and penalize frauds in the sports sector. This bill also focused on establishing regulatory mechanism for the online gaming sector in India. In 2013, after a major match-fixing scandal in the Indian Premier League (IPL), the Supreme Court of India set up the Lodha Committee to suggest reforms for Indian cricket. The Commission recommended that sports betting in India should be legalized but with strong safeguards. Furthermore, the Law Commission of India’s 276^th Report (2018)[29] titled “Legal Framework: Gambling and Sports Betting including Cricket in India” holds significant relevance in regulating sports betting in India. The report recognizes that despite the presence of strict laws illegal betting and gambling activities persists in various parts of the country. The Commission recommended that sports betting should be regulated rather than banned because this will help to curb illegal betting and will also help to generate significant revenues for the government.

KEY JUDICIAL DECISIONS

1.RMD CHAMARBAUGWALLA V. UNION OF INDIA (1957)[30]

The landmark case of R.M.D. Chamarbaugwala v. Union of India (1957) laid the foundation for distinguishing between games of skill and games of chance under Indian law. As Public Gambling Act 1867 did not provide any explicit definition for game of skill and game of chance. The Supreme Court held that betting and gambling are not considered “trade, commerce, or business” under Article 19(1)(g) of the Indian Constitution, as they are inherently harmful to public welfare and morality. The Apex court observed that:-

2. D.R K.R. LAKSHMANAN V. STATE OF TAMIL NADU AND ANR (1996)[31]

This case is a significant ruling by the Supreme Court of India that dealt with the legality of horse racing and betting. In this case, the Court distinguished horse racing as a game of skill, rather than a game of chance, and thus exempted it from being classified as gambling.

The Court held that betting on horse racing, which involves an element of skill (such as understanding the form of the horses, jockeys, track conditions, etc.), does not fall under the category of gambling, which is typically based on chance. As a result, the Court allowed the continuation of betting on horse races, provided that it was properly regulated.

3. STATE OF ANDHRA PRADESH V. K SATYANARAYANA AND ORS (1968)[32]

It is a landmark case that dealt with the legality of playing rummy. The Supreme Court held that rummy is a game of skill and not of chance, emphasizing that the outcome of the game depends on the player’s ability to strategize, memorize, and make informed decisions, rather than mere luck. Therefore, the Court ruled that playing rummy for money does not amount to gambling under the relevant laws.

EMERGING TRENDS IN SPORTS BETTING

With the rise in technological advancements online betting apps are also significantly increasing in India thus posing risk at both individual and society level. There are increasing cases of people losing their precious money to these online apps. Most of these apps are unregistered, and it makes it difficult to track and regulate them. A report by Rashtriya Raksha University’s The Security and Scientific Technical Research Association observed that Illegal online betting and gambling companies act as channels for money laundering and terrorist financing[33]. Fantasy gaming is also another emerging platform in India that is running a vicious cycle of addiction for its users. According to one report, on every international match of the Indian cricket team around 1500 crore rupees are given to these apps by people. The revenue of the fantasy gaming industry is projected to retain 25,240 crore rupees which was 6800 crores in financial year 2022. In these apps, the winners often put money back in the app with the hope of winning something big and losers put their money to recover their money. Due to the low price barrier one can get entry into these apps by 10 and 20 rupees. That is the reason why these apps have a significant amount of users. India nearly has 300 fantasy sports platform and 18 crore users making it the fastest growing market worldwide and by 2027 its user base will be 50 crores.

Legality of fantasy apps– Fantasy apps are legal in India but some states like Telangana, Andhra Pradesh, Odisha and Assam have banned it

AVINASH MEHROTRA V THE STATE OF RAJASTHAN &ORS (2021)[34]

The Supreme Court upheld the Rajasthan High Court’s decision that online fantasy sports are games of skill and not gambling. The court held in its judgement that fantasy sports are protected under Article 19(1)(g) of the Indian Constitution i.e. the right to practice any profession or business. The court also noted that games of skill are excluded from most gambling legislations.

GLOBAL TRENDS IN SPORTS BETTING REGULATIONS

In UK gambling is legal. The Gambling Act 2005 regulates online gambling in the country. All types of online gambling are authorized by the Gambling Commission, and as such, they can be legally offered in the country if they hold a valid license from the Commission. In the USA, each state has power to make rule on gambling related activities. At national level, the Unlawful Internet Gambling Enforcement Act regulates the gambling in the nation. And in Australia online wagering, sports betting and lotteries is strictly regulated and is subjected to different licensing’s.

India should also regulate sports betting in the country, taking example from the various countries. Since the rise in technological advancements, unregulated online platforms are rising day by day which demands for strict rules and regulations.

SOCIAL CONCERNS

The lure of online cricket betting took a horrible turn when an assistant engineer lost around 1.5 crore in online cricket betting. Following this, his wife, a homemaker, died by suicide blaming the men who led money to her husband if harassment, which eventually led her to take this drastic step.

More individuals are getting dragged into this pit with their dreams of becoming rich in a short time. Addiction is one of the primary social concerns as individuals may develop a dependency on the thrill or potential for the monetary gain leading them to fall in this vicious cycle of addiction. It can also lead to mental disorders such as anxiety and depression as most of the time they are not able to cope with the financial loss. Moreover, there are several instances where minors are getting trapped into these addictive platforms as there is no procedure to confirm their age or to stop this as they use their parents Id and personal documents to make their accounts.

REGULATIONS AND WAY FORWARD

The Public Gambling Act 1867 should be revised, as this act has become outdated. It fails to cater to the needs of modern times, particularly in regulating online platforms and technological advancements. As there are state specific regulations for regulating betting and gambling in India, it calls for strict centralized law for the whole nation to curb the online platforms promoting betting and gambling. It is evident that today in India, sport betting operates in a grey area because of unclear rules and regulations. Therefore, it becomes of utmost importance to form clear guidelines for regulating sport betting and other related activities. Moreover, enforcement Mechanisms should be strengthened because, with advancements in technology it becomes very difficult to tackle and regulate the various online platforms which are operating in grey area so this calls for strict enforcement mechanisms to be put in place in order to regulate sports betting. Furthermore, it becomes very important to educate the public about the fraudulent betting apps and addictive nature of these apps which lure them with dreams of becoming rich in short time. It is important for public to know about the side effects of betting on their pocket and mental health. Moreover, government should focus on creating institutions to support people who are facing anxiety and depression because of the financial losses from betting and gambling activities.

CONCLUSION

Thus, it can be observed that sports betting and other related activities in India operates in a grey area which calls for the need to impose strict regulations in order to curb these activities. Laws like Public Gambling Act 1867 have become outdated and fails to cater to the needs of modern times. Various unregulated online platforms promoting betting and gambling-related activities are operating which are dragging tons of individuals into their falsified claims of becoming rich in a short time without effort. This raise concerns both at the individual and societal levels about the future of developing India where youth are spending the precious years of their lives building accounts on these apps and generating lakh of cores of revenues for these apps. This calls for urgent need for government to impose strict regulations to curb these apps and their growing influence. Further these apps are disturbing the mental peace of individuals where many people are becoming victims of anxiety and depression. Hence, regulations and enforcement of sports betting is of utmost importance.

REFERENCES

Law Commission of India, Legal Framework: Gambling and Sports Betting Including Cricket in India, Advocate Khoj, available at https://www.advocatekhoj.com/library/lawreports/legalframework/8.php ( last visited Jan 24, 2026)
S.S. Rana & Co. Advocates, Gambling Laws in India, available at https://ssrana.in/corporate-laws/gaming-and-sports-laws-india/gambling-laws-india/.( last visited Jan 24,2026)
Aklovya Panward, Sports Betting, iPleaders, (July 31, 2017), available at https://blog.ipleaders.in/sports-betting/.(last visited Jan24,2026)
Aishwarya Agarwal, Is Sports Betting Legal in India?, LawBhoomi, (September 4, 2018), available at https://lawbhoomi.com/is-sports-betting-legal-in-india/#:~:text=The%20Public%20Gambling%20Act%20of%201867,-The%20primary%20legislation&text=The%20Act%20prohibits%20the%20operation,of%20up%20to%20three%20months. ( Last visited Jan 24, 2026)
Advocates Club, Fantasy Gaming Guidelines and Regulations, available at https://advocatesclub.in/corporate-law/fantasy-gaming-guidelines-and-regulations/. ( Last visited Jan 24, 2026)
Legal Kart, Legality of Sports Betting in India, available at https://www.legalkart.com/legal-blog/legality-of-sports-betting-in-india. (Last visited Jan 24, 2026)

[1] Global Sports Betting Market Size & Share Report, 2023-2030, Grand View Research, https://www.grandviewresearch.com/industry-analysis/sports-betting-market (last visited Jan. 23, 2025).

[2] Available at : https://www.oxfordlearnersdictionaries.com/definition/american_english/betting ( last visited on 23-1-2025)

[3] Bryan A. Garner, Black’s Law Dictionary, (8^th ed. West Publishing Co.) 701, 2004

[4] Finance Act, 1994, No. 32 of 1994, § 65B(15) (India).

[5] .Public Gambling Act, 1867, Act No. 3 of 1867.

[6] Public Gambling Act, 1867, § 3, Act No. 3 of 1867

[7] Public Gambling Act, 1867, § 4, Act No. 3 of 1867

[8] Public Gambling Act, 1867, § 5, Act No. 3 of 1867

[9] Public Gambling Act, 1867, § 6, Act No. 3 of 1867

[10] Public Gambling Act, 1867, § 7, Act No. 3 of 1867

[11] Public Gambling Act, 1867, § 12, Act No. 3 of 1867

[12] Public Gambling Act, 1867, § 13, Act No. 3 of 1867

[13] Public Gambling Act, 1867, Act No. 3 of 1867

[14] Prize Competition Act, 1955, Act No. 42 of 1955

[15] Indian Contract Act, 1872, § 30, Act No. 9 of 1872

[16] Information Technology (Intermediaries Guidelines) Rules, 2011, Gaz. Of India, Extra., Pt. II, Sec. 3(i), Notification No. G.S.R. 581€, (2011)

[17] Consumer Protection Act, 1872, Act No. 68 of 1872

[18] State of Bombay v. M.D. Chambaurgwala, A.I.R. 1952 Bom. 355

[19] Lotteries (Regulation) Act, 1998, Act No. 17 of 1998

[20] Bombay Prevention of Gambling Act, 1887, Act No. 3 of 1887

[21] Andhra Pradesh Gaming Act, 1974, Act No. 4 of 1974

[22] Delhi Public Gambling Act, 1955, Act No. 1 of 1955

[23] Gujarat Prevention of Gambling Act, 1887, Act No. 6 of 1887

[24] Meghalaya Prevention of Gambling Act, 1970, Act No. 7 of 1970

[25] Jammu and Kashmir Public Gambling Act, 1960, Act No. 19 of 1960

[26] Goa, Daman, and Diu Public Gambling Act, 1976, Act No. 1 of 1976

[27] The Sikkim Online Gaming (Regulation) Act, 2008, Act No. 3 of 2008

[28] The Sports Online Gaming and Prevention of Fraud Bill, 2018, Bill No. 245 of 2018

[29] The Law Commission of India’s 276^th Report (2018), titled Legal Framework: Gambling and Sports Betting Including Cricket in India, Report No. 276 (2018)

[30] RMD Chambaurgwala v. Union of India, AIR 1957 SC 520

[31] D.R. K.R. Lakshmanan v. State of Tamil Nadu & Anr., (1996) 2 SCC 226

[32] State of Andhra Pradesh v. K. Satyanarayana & Ors., AIR 1968 SC 825

[33] Available at Press Trust of India, Illegal Online Betting, Gambling Firms Act as Channels for Money Laundering and Terror Financing, Says Report, PTI NEWS, https://www.ptinews.com/story/business/illegal-online-betting-gambling-firms-act-as-channels-for-money-laundering-and-terror-financing-says-report/1648739 ( last visited Jan 24, 2025)

[34] Avinash Mehrotra v. The State of Rajasthan & Ors, (2021) 5 SCC 355

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