Chauhan submitted its report on July 5, , examining whether betting may be legalised in India. The report follows a Supreme Court directive in where the Court asked the Commission to examine the possibility of a law to regulate betting. The Commission noted that while it is desirable to ban betting and gambling, it is difficult to prevent these activities altogether.
Therefore, it recommended regulation of gambling and betting. Regulating gambling and betting: Betting and gambling is a state subject under the Constitution. Therefore, the Commission noted that state legislatures may enact a law to regulate betting and gambling. However, it stated that Parliament may enact a model law to regulate betting and gambling, which states may adopt. Parliament may also enact laws under Article in national interest or Article if two or more states consent.
With regard to online gambling and betting, it observed that Parliament has the competence to enact a law. Regulations governing gambling and betting: The Commission recommended that gambling and betting should only be permitted by licensed operators from India. For participants, it recommended that there should be a cap on the number of such transactions for a specific time period, i.
It further recommended that transactions between operators and participants should be made cashless and penalties should be imposed for cash transactions. In , the ICC again prosecuted cricket players for match-fixing. However, it is important to note that a British tabloid magazine, not the ICC, detected and exposed the match-fixing instance that occurred in during the match between Pakistan and England. Thus, the ICC is not necessarily the agency that monitors and detects the corrupt activity.
The ICC itself admits that policing corrupt behavior is not easy for it to handle. Thus, it is clear that the ICC, even after making amendments to its regulations and setting up the ACSU, is not fully capable of enforcing its regulation to stop illegal betting, especially given the continuing occurrence of betting scandals in cricket.
The ICC members also monitor corrupt betting practices. In addition to enforcing the ICC rules and working with the ICC, See Rules and Regulations , supra note 71 providing multiple rules for various aspects of cricket regulation. First, the member countries have established their own national regulatory cricket boards. Because such national cricket boards, and even the ICC in general, do not have the policing powers to regulate and monitor corrupt activity in cricket, Condon, supra note 67, para.
Thus, a second way ICC member countries deal with corrupt betting is by applying national gambling laws. However, such policing cannot take place when there is a blanket ban on every type of betting in cricket, as is the case in India. These problems in India indicate a clear need for regulation.
Rather than impose a complete ban, India should follow the regulatory models of the United Kingdom and South Africa to address corrupt betting practices in cricket. The following Parts analyze the gambling laws of the United Kingdom and South Africa to determine the best regulatory model for India to follow. Act applies to all individuals involved in sports gambling. It governs cricket matches played in England, Wales, and the Isle of Man.
The rules applicable to match-fixing and betting apply only to cricketers and employees of ECB or parties related to the board, not to ordinary persons who bet on a match. Cricketers and other individuals subject to the rules of the Board cannot make bets on any aspect of the matches themselves or provide information that would give someone an unfair advantage in placing a bet. These rules do not address general gambling regulations that criminalize bets by individuals who do not participate in the match themselves, but are only spectators.
In , the United Kingdom passed the U. Act, which regulates gambling and betting practices by all individuals, including cricketers and spectators of the game. The U. To facilitate these objectives, the U. Act covers any betting practices that include paying an individual to lose a game deliberately to profit from a bet placed on the outcome of the game. It also legalizes gambling for adults above the age of eighteen. To regulate such betting practices, the U.
Act differentiates between legal and illegal gambling practices to criminalize only certain types of activities. It defines legal betting as making or accepting a bet on the likelihood of anything occurring or not occurring, or of anything being true or not. The outcome of the bet is irrelevant; it does not matter whether the team with a player engaged in betting wins.
This broad definition includes betting on sports. Illegal betting practices include cheating, where a person is prohibited to cheat when gambling or enable or assist another person to cheat. Cheating also consists of actual or attempted deception or interference with the process of gambling or events related to the process of gambling. Thus, match-fixing and spot-fixing fall under illegal gambling practices under the U. Act, because the bookmakers and players involved cheat themselves and generally assist others in cheating as well.
Such practices interfere with cricket, which would fall under an event related to gambling practices. Penalties for committing an offense under the Act can be harsh; a person found guilty can be imprisoned for up to two years and forced to pay a fine. To regulate such corrupt gambling practices, the U. The Commission consists of a chairman and other commissioners appointed by the Secretary of State. The Commission is in charge of reporting to the Secretary of State about incidents, manner, effects, and regulation of gambling.
To compile such reports, the Commission has to monitor betting practices. The Commission regulates gambling activities conducted by betting syndicates and individuals through operating licenses. The Commission issues operating licenses that authorize licensees to provide facilities for betting. The licensees act as betting intermediaries, where they provide services that facilitate making or accepting bets between others. Such betting practices can include betting on the outcome of a competition, event, or a process, other than a game of chance which focuses more on gambling on games.
A personal license can also be issued authorizing an individual to perform functions of the operational management of gambling activities. The Commission conducts its regulatory actions by reviewing and authorizing gambling activities and individuals involved through an application process for the operating license.
Betting intermediaries must submit an application to obtain an operating license. The Commission has sole discretion to issue licenses with conditions restricting the nature of the activities conducted in the gambling facilities, the circumstances in which they are conducted, or their extent.
These operating licenses are given only to a small group of individuals because they are issued on the condition that bets may be accepted on behalf of the licensee, only by the licensee, the person employed by the licensee, or the holder of another general betting operating license. Thus, the Commission has a record of all activities taking place in gambling facilities, the individuals facilitating the gambling practices, and the opportunity to review the betting practices before bets are made to ensure that they are legal.
The Commission also regulates betting practices after the application process is complete by keeping a record of and monitoring gambling activities. For instance, the Commission maintains a register of the operating licenses it issues. The holder of an operating license must also provide records relating to licensing activities if requested by the Commission. Additionally, the Commission visits and makes phone calls to licensed operators to ensure compliance.
The Commission specifically monitors betting in sports as well. The Commission may require a person, as a condition to an operating license, to provide any information to the Commission about breaches of rules applied by sporting bodies. Additionally, the Commission maintains a confidential hotline to gain information about suspicious betting activity.
Through these procedures, the Commission maintains a record of the betting practices that occur and has the ability to keep track of the individuals involved. Bookmakers typically oppose licensing conditions that require them to divulge confidential information to the Commission, feeling a sense of loyalty toward their customers. Nonetheless, this issue poses a challenge for regulators that rely on this reporting system to monitor corrupt betting practices.
The Commission must stay vigilant in addressing such problems to ensure that the integrity of cricket is not compromised. SBIU works with sports governing bodies to help keep corruption out of sports betting and encourage the flow of information. The SBIU does this by requiring license holders to inform the Commission anytime a bet occurs that the Commission would want to void.
The license holders also have to report any violations of the laws of sports governing bodies. The SBIU collects and develops information about corrupt sports betting activities. It has jurisdiction over sporting events that take place in Great Britain, involve parties based in Great Britain, and activities that occur with a Commission licensed operator.
Furthermore, the Commission protects the integrity of sports by exercising police power over betting offenses through the SBIU. Act empowers the Commission to prosecute betting offenses and void bets. The Commission works with cricket governing bodies, betting operations, and the police to ensure compliance. To enforce its regulations, the Commission issues sanctions for violations of the operating licenses it issues. The Commission may review the manner and arrangements of the licensed activities and ensure compliance with the U.
The Commission can suspend or revoke a gambling license if conditions imposed in the license are not met, such as failing to provide information on a breach of rules applied by a sporting body. It can issue a warning, attach an additional condition, suspend or revoke a license, or issue a penalty. It can also enforce a financial penalty if a condition of the license has been breached.
The Commission also allows its local authorities to enforce provisions of the U. These local authorities have a new role in inspecting gambling premises to enforce the law. They can impose sanctions, such as limiting the hours of operation for bookmakers and reducing the number of gaming machines.
Thus, the Commission keeps records of and monitors legal and illegal betting practices, and enforces provisions of the U. Firstly, by differentiating between legal and illegal betting, See Gambling Act, , c. Act distinguishes a normal activity for individuals from activities that change the outcome of a sport. While betting is legal, cheating is not because it involves interference with how a cricket match should actually be played. Thus, the act criminalizes only corrupt behavior such as match-fixing and spot-fixing in cricket.
Secondly, the Commission uses regulation of legal betting to monitor individuals with the propensity to gamble. Through operating licenses issued to bookmakers, the Commission tracks gambling activities taking place, rather than criminalizing them and driving them underground.
In particular, the application process effectively keeps records of individuals involved in sports betting. Although this process does not guarantee that individuals involved in illegal betting will also engage in legal betting, monitoring and recording legal activities provides a link between the Commission and individuals involved in corrupt betting practices. In addition, by recording instances of prior offenses, the Commission has discretion to investigate and remove individuals who may want to engage in illegal betting practices and throw cricket matches.
Additionally, having a standardized system with trained employees protects against actual or perceived unequal treatment of participators. Thirdly, the SBIU creates a network among the different sports governing bodies to monitor illegal betting practices. When the SBIU receives information about a potential violation, it either prosecutes the violation itself or, if it is a less serious violation of a sports rule, refers the issue to the appropriate sports governing body.
For instance, if the possibility of criminal activity is high, the Commission will work with the police to address the problem. However, if a sports governing body, such as a cricket board, can quickly address the issue, then the Commission provides them with information to sanction the illegal behavior.
Thus, the Commission both effectively opens lines of communication between different governing bodies to encourage better flow of information and efficiently handles potential violations of betting practices. Seventy-four of the suspicious activity reports were made by betting operators under a licensing condition, while thirty-four came from other sources such as sports governing bodies, the media, and the public.
In addition, the Commission has taken enforcement actions against illegal gamblers. Between April and March , the Commission had pending actions against illegal gambling, out of which thirty-two involved betting. Six of the betting cases were criminal, but the Commission chose not to prosecute five cases and cautioned one betting syndicate. The rest of the cases were regulatory, where the Commission did not take action beyond the referral in thirteen cases, added a license condition in one, gave advice about conduct in four instances, warned two, warned three with conditions, required two betting syndicates to surrender their licenses, and the Commission revoked one license.
Clearly, the Commission has been able to implement different sanctions it has at its disposal to ensure that illegal betting practices do not take place. One critique of legalized gambling is that it can lead to problem gambling. When the U. The RGSB also promotes responsible gambling by encouraging licensed operators to provide socially responsible gambling products and players to have control over their play.
Such a model of legalizing gambling and providing responsible gambling strategies is effective; according to a recent report on gambling prevalence, in , over seventy-three percent of the population engaged in some form of gambling, which was a return to rates from , before gambling was regulated by the U.
Problem gambling did increase, from 0. However, the report did not find conclusive evidence of whether it was a random fluctuation or an actual jump in problem gambling, Id. Given that the increase was only 0. For instance, the Commission found that broadly, people gambled for social reasons, monetary reasons, excitement, amusement, to be challenged, to learn, or as an avoidance mechanism. The reasons for gambling did not involve the fact that gambling was now more available after it was regulated.
These individuals would gamble regardless of whether gambling was legalized. Additionally, it is not nearly the double or quadruple increase, as the BBC news article predicted. Furthermore, bookmakers take responsibility when they run betting syndicates by placing safeguards against problem gambling.
For instance, one betting syndicate is set up so customers protect themselves from gambling too much by placing limits in gambling accounts they may open with the bookmaker. Hillside New Media Ltd. However, this does not mean that the bookmaker or licensed operator owes a duty of care to the gambler. William Hill Credit Ltd.
For instance, in Calvin v. William Hill Credit Limited , a bookmaker did not owe a broad duty of care toward problem gamblers as a class and was not liable for losses a gambler incurred as a result of his gambling problem. Regardless of the benefits of legalized gambling, establishing a regulatory model can be costly.
However, this figure is a 9. Additionally, as the Commission continues to perfect its administration, the startup costs will be offset by application and annual fees collected from licensed operators. CSA is the national governing body for cricket. South Africa also regulates cricket through national legislation.
South Africa had initially banned betting in sports, but in , it established the act to regulate it instead. The South African Act purports to supervise matters related to casinos, gambling, betting, and wagering, and to promote uniform norms and standards related to gambling throughout South Africa.
It achieves uniformity by coordinating national and provincial legislation to regulate all matters related to gambling. The South African Act achieves its purpose by regulating gambling. In a fixed-odds bet, a bookmaker, prior to the event, calculates the different ways a game could be played based on a particular event happening.
Thus, the way a game will be played is predetermined. In an open bet, a bookmaker does not agree to any fixed odds when the bet is laid, but the amount that the bookmaker pays out depends on other possibilities that are not predetermined. Informal bets conducted on a noncommercial basis are also included in the definition of legal gambling. An informal bet consists of a bet, wager, undertaking, promise, or agreement, contemplated in Section 4 of the South African Act, between or among two or more persons.
None of the parties involved can be a bookmaker, derive a significant portion of his livelihood from gambling, and no one is paid a fee or gains anything other than winning the bet itself from the activity. This type of gambling is legal and can be licensed. The South African Act distinguishes between illegal and legal gambling. Gambling is illegal when a person engages in, conducts, or makes available a gambling activity, when the outcome of that activity depends in some way on a contingency related to an event or activity that is itself unlawful.
One cannot bet on something that is itself illegal, such as corruption in sports. Thus, if someone bets on particular plays in a match or the outcome of a match and predetermines those plays and outcomes to win, such activity would not be considered legal betting, because the bet would depend on an activity that is illegal. On the other hand, legal gambling refers to licensed gambling activity, permitted social gambling, or an informal bet, unless the party intends to establish a contractual relationship through the gambling activity, in which case it would not be considered an informal bet.
The South African Act regulates legal gambling by requiring national licenses. A national license specifies the identity of the licensee, the activities permitted or available to the licensee, and the premises from where the licensee will operate.
A person cannot engage in any work within the gambling industry unless that person has a valid national or provincial employment license permitting that work. The licensee cannot hire an employee or allow an existing employee to engage in any work unless the employee meets the requirements of the South African Act. These national licenses authorize certain legal gambling activities anywhere in the country.
They allow placing or accepting a bet or a wager. A person can also stake money on a fixed-odds bet with a bookmaker. Provincial licensing authorities can also issue licenses under the South African Act. Both the national and provincial legislatures have concurrent legislative powers with regard to gambling so they can both make laws related to it. Provincial licensing authorities follow provincial laws that govern the regulation of gambling, provided the provincial laws comport with the national act.
There are nine provincial gambling statutes that also regulate gambling and wagering in South Africa. The provincial authorities that enforce such statutes investigate and consider applications, and issue national licenses within their jurisdiction. Such national licenses are used for any activity or purpose to which national licenses apply and for which they are required, or are optional under the South African Act. The provincial authorities also conduct inspections to ensure compliance with the act, provincial law, and conditions of provincial and national licenses.
Licenses are renewable on an annual basis, subject to compliance with the license. Apart from issuing licenses, provincial authorities also ensure compliance with and maintain records of licensing activities. They have exclusive jurisdiction within their provinces and ensure, among other things, that unlawful gambling activities are prevented, detected, or prosecuted; that undertakings made by national and provincial licenses are carried out; and that industry employees are licensed.
An essential component of ensuring compliance is maintaining a record of each registered individual with a national or provincial license, including the activities permitted under each license, the address of the premises where licensed activities take place, and a record of individuals who own a five percent or more financial interest in the license.
This type of information is reported to the NGB at certain intervals. The NGB also submits information reported to it to provincial authorities, if requested. The NGPC consists of members from both the national and provincial governments who meet to establish national gambling policy and laws. Specifically, the NGB evaluates the issue of provincial licenses, monitors licensees for compliance with the provincial authorities, ensures uniformity in the application of the South African Act, and assists the authorities in detecting unlicensed gambling activities.
It also receives information recorded and maintained by the provincial authorities about the national licenses it issues. If it believes that illegal gambling is taking place, the NGB can engage with provincial licensing authorities to detect and suppress such activities. The NGB also provides a broad public education program to teach people about the addictive and socioeconomic effects of gambling.
Both the NGB and the provincial licensing authorities enforce the South African Act and impose sanctions for violating it. The provincial authorities suspend or revoke a license, for instance, if the licensee is found in violation of the act or has contravened a condition of the license. The NGB has inspectors who can enter licensed or unlicensed gambling premises unannounced, conduct inquiries, and act on behalf of the NGB. It specifically allows for informal, noncommercial bets that permit individuals to make bets with each other without the threat of criminalization.
The South African Act indirectly addresses this issue by stating that illegal activity consists of a gambling activity whose outcome depends on a contingency related to the unlawful activity. This potentially includes betting practices that result in a thrown cricket match.
However, the act does not specifically target betting practices that harm the integrity of a sport. Although the statute is unambiguous, it should be interpreted to include corrupt betting practices in sports, because those activities are made unlawful, at least by the ICC. Such employees may not be licensed, so the national licenses issued require employers to submit information about employees and agents.
Furthermore, by creating a gambling board to monitor provincial licenses, the NGB advises the NGPC on gambling issues that come up on a local level and informs the NGPC on new norms developing throughout the country. Furthermore, the NGB works with the provincial licensing authorities to research, publish, educate, train, and focus on staff development to strengthen the role of the NGB and the provincial authorities.
The NGB also works with provincial authorities to address illegal gambling activities occurring across provincial boundaries. By having the power to impose sanctions, the NGB has police power that cricket boards alone do not. In this way, the South African Act, through the NGB and the NGPC, addresses the problem of corrupt betting in cricket and regulates it, rather than criminalizing all aspects of sports betting. It combines education, research, and treatment into one program.
Furthermore, trends in South Africa show an increase in private sector and government funding towards research, treatment, and education about responsible gambling. Thus, the South African government takes an active role in checking on compulsive gamblers and taking proactive steps to minimize such consequences. This responsible gambling initiative is effective, where the prevalence rates for pathological gambling have remained fairly consistent, varying slightly depending on the availability of gambling.
This suggests that a change in the availability of gambling does not significantly change the number of people who gamble irresponsibly. In , before the South African model was implemented, National Gambling Board , supra note However, after the South African law changed, in , there were forty convictions that took place and admissions of guilt. In —, there were forty-six convictions and admissions of guilt for illegal gambling.
These statistics show an increase in the number of corrupt gambling practices that are caught as the new regulation continues to work, which bolsters the argument for the effectiveness of the South African model. Although the number of case convictions has decreased, there is a significant increase in the number of admissions of guilt, indicating that individuals are more inclined to confess their involvement in illegal gambling after the implementation of the regulatory model.
Thus, the regulatory model works not only to deter illegal betting practices, but also to persuade individuals to confess and settle matters rather than adjudicate the charges. Apart from official illegal gambling statistics for both the United Kingdom and South Africa, the number of international cricket scandals involving these countries has significantly decreased.
Since , when South Africa amended its legislation, and , when the United Kingdom amended its legislation, none of the major cricket scandals has involved either the United Kingdom or South Africa. The only recent scandal involving South African cricket involved the chief executive officer of CSA, who partook in inappropriate staff bonuses. Thus, the U.
India can utilize both comprehensive regulatory models to address corrupt sports betting practices. India currently outlaws gambling in sports. Gambling in cricket is regulated only through the Board of Control for Cricket. A common gaming-house is described as.
Prohibition on gaming-houses, on its face, prohibits activities such as card games and typical casino-style games, or games that depend on chance. However, the Public Act does not define gambling or explain what a game of skill might be, Cf. The Indian police enforce compliance with the Public Act. If the magistrate, an officer, or Superintendent of the Police has reason to believe, based on credible information and necessary inquiry, that a gaming-house has been established, he may enter himself or authorize certain ranked officers, by force if necessary, to take individuals in the gaming-house into custody.
Proof of playing for stakes is unnecessary. The penalties for association with a common gaming-house are outdated. Anyone who owns, occupies, is in charge of, or uses such a gaming-house, or anyone in the care or management of, or someone assisting in conducting the business of a gaming-house, and anyone advancing money for gaming, is liable for a fine not exceeding rupees about four to five dollars and three months in jail.
Whoever is only found in the gaming-house for gaming can be fined up to rupees and sentenced to one month in jail. Although the Public Act itself does not explain what gambling is and does not mention betting, gambling and betting have been discussed in Indian Supreme Court cases. State of Tamil Nadu, 1 S. The court in Lakshmanan v. In a nutshell, gambling under the Indian law is payment of a price for a chance to win a prize.
The games involved in making gambling bets are based on chance or skill. Such games include golf and chess. Games of chance and skill are not mutually exclusive, but games of chance predominantly involve chance and games of skill predominantly involve skill, although either can have elements of the other as well. Games of skill do not fall under the Public Act.
Horse racing is a systematic sport in which a participant is supposed to have full knowledge about the horse, jockey, trainer, and the race. Thus, India allowed betting on horse racing. However, because the Public Act does not define game of skill, it is unclear whether gambling in cricket is governed by the Public Act. Arguably, cricket is a game of skill; however, federal legislation does not address this issue clearly and leaves the scope of the act ambiguous.
Nonetheless, the government of India considers betting on cricket illegal. Only two states allow casino gambling and legal gambling in other states is restricted to horse racing. Monteiro, Why Not Legalise Betting? Some cities in India can also enforce their own gambling laws and make gambling, including betting on cricket, illegal. Case , U. Fed News Svc. ID A secret informer told police that certain individuals were betting on cricket.
The police then obtained search warrants and apprehended the individuals. One of them confessed to taking bids on a cricket match. The statute did not require any further allegations of match-fixing or spot-fixing for conviction. Not only is the criminalization of betting a problem within this model, but the penalties are also not severe enough to deter people from betting illegally. The maximum punishment under Indian law is a Rupee fine or three months in jail.
Considering that the Public Gambling Act was enacted in , the laws clearly need to be updated and improved. Betting and match-fixing in cricket have been rampant in India. For instance, during the Cricket World Cup in , the Indian police arrested nine individuals for running illegal gambling syndicates and seized gambling equipment used by bookies to accept and record bets. Such corrupt betting practices have led to a debate in India about whether betting in sports, especially cricket, should be legalized.
The current model of policing gambling in India remains ineffective and the need for regulation of betting in cricket in India is clear. Regulating betting in cricket, rather than criminalizing it, would ensure that the Indian government keeps track of bookmakers and individuals involved in betting on cricket matches.
India should combine characteristics of the U.
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