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CASINO LAWS AND THEIR SOCIAL HARM

The Public Gambling Act of 1867 forbids betting and gambling, and most parts of the nation view these activities as unlawful. The Public Gaming Act of 1867 is the main legislation governing gaming in India. Although it doesn’t specifically mention casinos, this colonial-era statute forbids

INTRODUCTION

The Public Gambling Act of 1867[1] forbids betting and gambling, and most parts of the nation view these activities as unlawful. The Public Gaming Act of 1867 is the main legislation governing gaming in India. Although it doesn’t specifically mention casinos, this colonial-era statute forbids operating or being in control of a public gaming establishment. The act’s provisions are sometimes regarded as out of date because they predate contemporary casino gaming, especially in light of the variety and technological sophistication of today’s gambling choices. Goa Public Gambling Act, and Sikkim Casinos (Control and Tax) Act of 2002 State laws for offering casino products in five-star hotels in Goa, Daman, Diu, and Sikkim. However, licenses for offering casino products offshore in Goa are available under the Goa Act.

LEGISLATION IN THE STATES OF GOA, DAMAN AND SIKKIM

The only states in India with the authority to enact legislation on gambling are Goa and Sikkim, both of which have legalized gaming and betting within their borders, albeit only under restrictions imposed by their respective state governments.

In Sikkim:

The Sikkim Casinos (Control and Tax) Act of 2002[2] Establishes the license requirements for casinos located in Sikkim’s five-star hotels. With the passage of the Sikkim Online Gaming (Regulation) Act, of 2008[3], Sikkim has also formally approved the creation of online casinos under specific license requirements. Generally, a license is good for five years unless it is cancelled or withdrawn. The Sikkim government knows the potential economic benefits of legalized gambling, including increased tourist and job prospects.

In Goa:

The Goa Public Gambling Act[4], which was established by the state government in the early 1990s, gave casinos in Goa legal status. This law made it possible for casinos to be licensed, which helped the sector thrive. With a few land-based casinos and multiple floating casinos on the Mondovi River, Goa is becoming a popular destination for tourists from all over the world.

THE DEBATE ABOUT CASINOS

The Public Gambling Act of 1867 cannot be considered a complete law as its provisions are considered outdated, and it does not provide statutory provisions for adequate regulations of new forms of betting and gambling. There is no clear definition of the word casinos. The closest reference to it is “common gaming houses”[5] Which have been defined by The Public Gambling Act, of 1867. The act restricts gambling activities like card betting and betting on animal fights in public. The Goa Gambling Act of 1990 provides detailed license requirements for casino operators that are mandatory for the functioning legally within fixed parameters of the state.

Gambling involves, not only chance but a hope of gaining something beyond the amount played. Gambling consists of consideration, an element of chance, and a reward. In the case of State of Andhra Pradesh vs. K. Satyanarayana [6]which specifically focused on the issue of whether the Tamil Nadu Horse Races (Abolition and Wagering or Betting) Act, 1974, is constitutional. The petitioner contested the Act because it violated the Indian Constitution’s Article 14 [7](right to equality) and 19(1)(g) (right to practice any profession or trade). The respondents argued that horse racing betting is a type of gambling in which the better’s skill—rather than that of the horse or rider—must be sharp observation and comprehension of the horse’s capabilities to make well-informed wagers, ruled unlawful by the Supreme Court, restoring the right of horse racing and betting as constitutionally protected activities. Asserting people’s rights to participate in skill-based activities like horse racing, the ruling stressed that any limitations on basic rights must be fair and reasonable.

In the case of the All India Gaming Federation and ORS. Vs State of Tamil Nadu, [8] The Madras High Court affirmed that although the State of Tamil Nadu can pass legislation to control internet gambling, it cannot outlaw skill-based games like poker and rummy since these have previously been deemed permissible. The Court made it clear that games of chance might be exempt from the Act’s prohibitions, not those requiring a high level of skill. The Court recognized the State’s authority to establish age restrictions and reasonable regulations regarding gaming time. However, it stressed that it was incorrect to classify games as solely dependent on chance without supporting data, and it concluded that online skill games shouldn’t be outright prohibited.

By largely upholding the petitioners’ claims, the High Court’s decision invalidated the sections of the Tamil Nadu Act that listed games of skill like poker and rummy as games of chance. The ruling upheld the legality of skill-based online gambling in Tamil Nadu and preserved the State’s power to enact laws that safeguard consumers without outright prohibiting it.

The existence of casinos frequently causes rates of gambling addiction to rise in local communities, impacting a sizeable section of the population. Gambling can affect a person’s family, friends, and social life. These effects can include depression and anxiety. Both residents and visitors to Goa have experienced a marked spike in gambling addiction as a result of the growth of the state’s casinos. The numbers are eloquent in any case: 45.4% of all surveyed Goa residents have gambled in the past year, with the lottery the most frequent form at 67.8%. In addition to alcohol and tobacco and the use of violence, a strong correlation was also found in a rural residence. 50% of respondents admitted to having gambled at least once in their lifetime; hence, those who have tried to tend to repeat.[9]

Anxiety, depression, and substance abuse are among the mental health conditions that are closely associated with gambling addiction. Gamblers who struggle frequently have elevated stress and emotional upheaval, which exacerbates underlying psychiatric disorders.[10]

Public awareness efforts emphasizing the dangers of gambling and the possibility of addiction are desperately needed. The goal of preventative efforts should be to inform the public about the warning signs of gambling addiction and the services available to provide support. Interventions in school settings may also aid in identifying at-risk students and provide them with the support they require, including life skills training and counselling, to help them avoid the temptations of gambling.

The generation of jobs and tourism are two major aspects of the casino industry’s economic impact on Goa. The state’s economy, which depends mostly on tourism, benefits financially from the money that casinos bring in through taxes and license fees.[11]

The government of Goa has taken measures to reduce the risk of gambling addiction among residents with the passing of The Goa Public Gambling (Amendment) Bill, 2012

No person other than a tourist shall have entry to the place or area where the game/games as authorized under section 13A are conducted: Provided that bona fide staff of a Five-Star Hotel or a Vessel, who are engaged in operation and service to guests, shall not be prevented entry. Provided further that a Government officer, while discharging an official duty, shall also not be prevented from entry.[12]

CONCLUSION

The legal framework in India that surrounds casinos, especially in areas like Goa and Sikkim, is a result of a complicated interaction between social concerns, legal precedents, and commercial interests. Although the Public Gambling Act of 1867 Later state-specific legislation has given casinos a legal foundation to operate under, these rules are frequently viewed as antiquated and inadequate to deal with the reality of gambling in the current world.

Goa’s approach to regulating and licensing casinos has improved the state’s economy by increasing employment and tourism. However, it has also brought up significant societal issues, particularly about gambling addiction and its detrimental impacts.[13] The increasing reliance of both locals and tourists on gambling highlights the need for increased public awareness efforts and preventative actions to protect vulnerable populations.

In conclusion, even while the casino sector has boosted the local economy in places like Goa, [14]gaming laws must be updated and properly implemented to lessen negative societal effects. To guarantee that the advantages of legalized gambling do not come at an intolerable social cost, there must be ongoing communication among stakeholders, including the government, law enforcement, and civil society. To establish a safer and more equitable gaming environment in India, public health interventions, legal reforms, and responsible gaming initiatives must collaborate.

In conclusion, even while the gambling sector has undoubtedly helped local economies in locations like Goa, it is imperative that gambling regulations are updated and correctly applied to minimize detrimental impacts on society. Interactions between the government, law enforcement, and civil society are necessary to ensure that the benefits of legalized gambling do not result in an unsustainable societal cost. Public health interventions, legislative changes, and responsible gaming efforts must work together to create a safer and more equitable gaming environment in India.

Author(s) Name: Athrva Haldankar (Bharati Vidyapeeth New Law College Pune)

References:

[1] The Public Gambling Act, 1867 ,s 3

[2]The Sikkim Electronic Entertainment Games (Control and Tax) Act, 2002 , s 3

[3] Sikkim Online Gaming (Regulation) Act 2008 , s 4

[4] The Goa, Daman and Diu Public Gambling Act, 1978, s 5

[5] The Public Gambling Act, 1867, s 1

[6] State of Andhra Pradesh v K Satyanarayana [1968] AIR 825 (SC)

[7] Constitution of India, art 14 and art 19(1)(g)

[8]All India Gaming Federation v State of Tamil Nadu (2023) W.P. No. 13203 of 2023 (Mad HC).                 

[9] ENV Media ‘Gambling in Goa: Social Costs’ <https://env.media/goa-casino-communities> accessed 7th August 2024

[10]Mental Health Foundation ‘Gambling and mental health’ <https://www.mentalhealth.org.uk/explore-mental-health/a-z-topics/gambling-and-mental-health> accessed 8th October 2024

[11] ENV Media ‘Gambling in Goa: Social Costs’ < https://env.media/goa-casino-communities> accessed on 8th October 2024

[12] The Goa Public Gambling (Amendment) Bill, 2012 s 13G

[13]Times Of India ‘Casinos in Goa: The disaster factor’ <https://timesofindia.indiatimes.com/city/goa/casinos-in-goa-the-disaster-factor/articleshow/24956050.cms> accessed on 8th October 2024

[14] India Brand Equity Foundation  <https://www.ibef.org/states/goa> accessed on 8th October 2024