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Report No. 276

Chapter V

Statutory Provisions

5.1 Whilst 'betting and gambling' and taxation thereof are State subjects, as enumerated under Entries 34 and 62 of List II (State List) of the Seventh Schedule of the Constitution of India, there still exist certain Central Legislations, affecting the subject. The Indian Penal Code, 1860 (IPC), the Indian Contract Act, 1872 (Contract Act), the Foreign Exchange Management Act, 1999, and the Prevention of Money Laundering Act, 2002 (PMLA) are some examples. A brief description of these laws is as under:

A. Central Laws

1. The Lotteries (Regulation) Act, 1998

5.2 "Lotteries", falling under Entry 40 of List I of the Seventh Schedule of the Constitution of India is a Central Subject and is therefore governed by the Lotteries (Regulation) Act, 1998, a Central enactment. Accordingly, "lotteries" have been generally excluded from the scope of 'betting and gambling'.

5.3 The Act of 1998 lays down the conditions subject to which lotteries may be organised by State Governments, viz. the place of the draw should be located in the concerned State, and vide section 4, sale proceeds to go to the State treasury, etc. At the same time, section 5 of the Act, 1998 gives to the State Governments, the prerogative to run lotteries, within their geographical territories, while prohibiting the sale of their lottery tickets in any other State.

Legal Framework - Gambling and Sports betting including Cricket in India Back

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