SPORTS LAW & GAMBLING LAWS – THE INDIAN SCENARIO
Every time we watch our favorite team play or Favorite sports person deliver an exceptional performance, a thought crosses our mind – What are the chances of our team winning the championship ?; Will our Favorite player perform well?; we start some mind calculations to check the chances of our favourite team winning that particular championship or that favorites sport person acing it yet again.
This brings us to an interesting and increasingly complex question: What is the legal position of gambling and sports betting in India? Is betting on sporting events permitted? Where does the law draw the distinction between gambling and games involving skill? And, with the rapid growth of online gaming and fantasy sports, how is the traditional legal framework adapting to a digital environment?
The present article examines the legal framework governing gambling and sports betting in India and considers some of the challenges emerging at the intersection of sports, gambling, technology and regulation.
GAMBLING AND BETTING IN INDIA – A HISTORICAL PERSPECTIVE
Gambling and betting in India have had a long and intricate history, shaped by centuries of social practices and evolving legal frameworks. From traditional games of chance to the emergence of sophisticated online platforms, gambling activities have evolved alongside India’s political, cultural and technological developments.
The last decade, in particular, has witnessed a significant transformation in the gaming and betting landscape. The rapid growth of online gaming platforms, fantasy sports and digital payment systems has made the distinction between traditional gambling and technology-driven gaming increasingly complex.
Sports betting itself is a multi-billion-dollar global industry. At the same time, it remains one of the most controversial areas of sports regulation because of concerns relating to financial exploitation, match-fixing, integrity of sporting competitions, addiction, money laundering and consumer protection.
THE CONSTITUTIONAL FRAMEWORK
In India, betting and gambling fall within Entry 34 of the State List under the Seventh Schedule to the Constitution of India. Consequently, States possess legislative competence to regulate betting and gambling within their respective jurisdictions.
Historically, the principal central legislation in this area has been the Public Gambling Act, 1867, together with various State-specific gambling laws and amendments. Several States have adopted the 1867 legislation or enacted their own statutes based upon similar principles.
An important feature of the traditional legal framework is the distinction between ‘games of chance’ and ‘games involving skill’. The statutory framework in several jurisdictions has recognised an exception for games of “mere skill”. The distinction has subsequently become particularly significant in the context of online gaming and fantasy sports.
SPORTS BETTING AND THE QUESTION OF SKILL
The legality of sports betting in India has historically remained complicated.
Horse racing is one of the most prominent examples of an activity in which betting has received judicial consideration. The Supreme Court, in Dr KR Lakshmanan v State of Tamil Nadu, recognised horse racing as a game where success substantially depends upon skill and accordingly treated it differently from games predominantly based upon chance.
The position becomes considerably more complicated when one moves from horse racing to betting on cricket, football or other sporting events. Traditional sports betting generally involves wagering money on the outcome of an event and has, therefore, been treated differently from activities where the element of skill predominates.
The growth of fantasy sports has further complicated this distinction.
Fantasy sports platforms allow participants to create virtual teams comprising real-life players and earn rewards based upon the performance of those players in actual sporting events. Several High Courts have considered whether such activities constitute gambling or whether they are predominantly games of skill.
This has resulted in an important legal distinction between betting on the outcome of a sporting event and participating in a fantasy contest where a participant’s knowledge, judgment and skill are relevant to the outcome.
However, the legal position has not historically been uniform across India, with different States adopting different approaches towards gaming and gambling.
THE ONLINE REVOLUTION
The emergence of online gaming has created a particularly difficult regulatory problem.
Most traditional gambling legislation was enacted in an era in which gambling activities were predominantly physical and geographically identifiable. The internet, however, does not operate within the same territorial boundaries.
A player may be physically located in one State, access a platform hosted elsewhere, make a payment through a third-party payment intermediary and participate in a game operated by an entity incorporated outside India.
This raises fundamental questions of territorial jurisdiction, enforcement, taxation, consumer protection and regulatory competence.
The issue is further complicated by the fact that States may adopt different approaches towards the same activity. What may be permissible in one jurisdiction may attract restrictions in another.
THE LAW COMMISSION’S APPROACH
The Law Commission of India examined the issue comprehensively in its Report No. 276, “Legal Framework: Gambling and Sports Betting Including in Cricket in India”, submitted in July 2018.
Rather than treating prohibition as the only possible regulatory response, the Law Commission considered whether gambling and betting could instead be brought within a regulated framework through licensing and appropriate safeguards.
The discussion is significant because it recognises the practical difficulty of completely eliminating betting activities merely through prohibition. Regulation, licensing, transparency and mechanisms for monitoring financial transactions were considered as possible tools for addressing the risks associated with gambling and sports betting.
The question, therefore, is not merely whether gambling should be permitted or prohibited. It is also about how the State can effectively regulate an activity that continues to exist despite legal restrictions.
ADVERTISING AND RESPONSIBLE GAMING
The regulatory framework has also extended beyond the activity itself to the manner in which gaming and gambling-related services are advertised.
Advertising standards have increasingly focused on preventing misleading representations, particularly representations suggesting that gaming can be treated as a reliable source of income or financial success. Safeguards relating to minors and appropriate risk disclosures have also assumed greater importance.
This is particularly relevant in the sports industry, where gambling and gaming advertisements can reach enormous audiences through television, digital media, social media platforms and sponsorship arrangements.
The association between sporting celebrities and gaming platforms also raises an important question: Where should the line be drawn between legitimate commercial advertising and promotion that may encourage financially risky behaviour?
THE ONLINE GAMING ACT, 2025
The regulatory landscape has undergone a significant development with the enactment of the Online Gaming Act, 2025.
The Government has stated that the legislation prohibits online money games and seeks to establish a safer digital gaming ecosystem. At the same time, the framework distinguishes permitted forms of online gaming, including e-sports, from online money games.
This represents a significant shift in the regulatory approach towards online gaming.
The development is particularly important because it demonstrates that the legal debate is no longer limited to the traditional question of whether an activity constitutes a “game of skill” or a “game of chance”. The regulatory focus increasingly encompasses the presence of monetary stakes, digital platforms, consumer protection and the broader consequences of online gaming.
Accordingly, the emergence of online gaming legislation may require the industry to reconsider business models that were historically structured around the skill-versus-chance distinction.
THE CONTINUING ENFORCEMENT CHALLENGE
Legislation, however, is only one part of the regulatory equation.
Despite restrictions, sports betting continues to take place through informal bookmakers, underground networks and online platforms operating from outside India. The enforcement of restrictions against such activities can be particularly challenging where the operators, servers, payment mechanisms or corporate entities are located outside the jurisdiction.
This creates a significant jurisdictional and enforcement challenge.
Traditional enforcement mechanisms are often territorial, whereas online betting networks can be transnational. A platform may therefore be accessible to Indian users even when its operator is located in another jurisdiction.
The problem is not limited to gambling laws. It also intersects with issues relating to cybercrime, financial regulation, money laundering, taxation, data protection and international cooperation.
CONCLUSION
The Indian position on gambling and sports betting has, therefore, evolved from a relatively straightforward distinction between ‘games of chance’ and ‘games of skill’ into a far more complex regulatory landscape.
The constitutional allocation of legislative power to the States, State-specific gambling laws, judicial interpretation of games of skill, the emergence of fantasy sports, the growth of online gaming and the increasing difficulty of regulating offshore platforms have collectively created a fragmented and evolving legal framework.
Sports betting also presents concerns that extend beyond gambling itself. The integrity of sporting competitions, match-fixing, consumer protection, financial crime and responsible advertising are all closely connected to the manner in which betting activities are regulated.
The enactment of the Online Gaming Act, 2025 further demonstrates that India’s approach towards technology-enabled gaming is undergoing significant transformation.
Ultimately, the central challenge for Indian sports law is no longer simply to determine whether betting is “legal” or “illegal”. The more difficult question is how the law can effectively regulate an increasingly digital, borderless and commercially significant industry while protecting consumers and preserving the integrity of sport.
As technology continues to change the manner in which sports are consumed, monetized and participated in, the relationship between sports law and gambling law in India is likely to remain an evolving area of legal debate.
~ADV. SANIKA LALIT