Leagl view on a betting website on online skill games
Adil
(Querist) 13 July 2012
This query is : Resolved
I would like to develop a website where in people can play skill games online and bet for real money. Is it legal in India?
Please answer this asap.
ajay sethi
(Expert) 13 July 2012
online betting is illegal
R.K Nanda
(Expert) 13 July 2012
No,it is illegal.
prabhakar singh
(Expert) 13 July 2012
Section 30 of the Indian Contract Act 1872 declares wagering agreements as void. The section is as follows:
Agreements by way of wager void- Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide by result of any game or other uncertain event on which any wager is made.
But at the same time FUTURES AND INSURANCE CONTRACTS ARE VALID.
Wagering agreement not unlawful
It has been laid down by the Supreme Court, in Gherulal Parekh v.Mahadeo Das that though a wager is void and unenforceable it is not forbidden by law .Hence a wagering agreement is not unlawful under section 23 of the Contract Act and therefore the transactions collateral to the main transaction are enforceable.
Exceptions
Horse Race
This section does not render void a subscription or contribution, or an agreement to subscribe or contribute, toward any plate, prize or sum of money, of the value or amount of five hundred rupees or upwards to the winner or winners of any horse race.
Crossword competitions and lottery The supreme court of India in B.R Enterprises V. State of U.P. held that even the state sponsored lotteries have the same element of chance with no skill involved in it and it comes under wagering contracts as the very nature of agreement has not changed and thus be void. If chance does not play a role and victory is completely dependent on skill, the competition is not a lottery .Otherwise it is. The Madhya Pradesh High Court in Subhash Kumar Manwani v. State of MP has characterized lotteries as wager and the court held that agreement for payment of prize money on a lottery ticket was held to be coming within the category of wagering agreement as contemplated by section 30.
The principle and purpose behind Sec. 30 to treat an agreement by way of wager as void is that, the law discourages people to enter into games of chance and make earning of trying luck instead of spending their time , energy and labour for more fruitful and useful work for themselves, their family and society.
Adil
(Querist) 14 July 2012
Though it applies on games in which luck and chance matters. But does it also applies on games where a player needs skill to play and win it?
kartikeya
(Expert) 14 July 2012
search the forum answer is already given in previous query...
Adil
(Querist) 14 July 2012
I do understand but I wanted a straight forward answer. Can I go ahead with the project that has skill game betting online system or not? Thank you for your patience
Guest
(Expert) 14 July 2012
Dear Adil,
Betting is termed as gambling, wheras gambling is highly frowned upon in many parts of India and that means that the betting laws are very strict. Some Indian States go as far as banning even lottery draws, what to state about betting, completely and even the states that do allow lottery gambling do so under strict guidelines for the government.
So, no casual consultation would serve your purpose. Therefore, your case would need careful examination based on your details of business plan and terms with specific reference to the states/Indian laws.
You are therefore advised to hire services of some knowlegeable expert for the purpose of your guidance.
Adil
(Querist) 14 July 2012
Thank you very much Mr. PS Dhingra. Can you recommend anyone who can help me with this?
Guest
(Expert) 14 July 2012
You may, if liked, send complete details through email.
