While police have in the past arrested people for allegedly running inter-state betting racket on the results of the IPL matches. However such activity continues unabated on the internet through a complex secretive network of websites that enable India bookies to bet on outcome of matches being played in India or internationally. In fact some website allows such "players" bet on actual outcome of each ball, over and innings. Many of these website operate on invitation only basis to avoid disclosing their modus operandi to the authorities. Hence in general terms an individual can not have access to the actual action unless he has been invited by one of the safe players who are already a member.

The sudden surge in online gambling and betting activities is attributed to the regulatory and other changes internationally. The international gaming scene, has undergone a radical change in recent years. Traditionally, gaming services were offered in brick and mortar casinos and bookmaking agencies. Distinctions were made in terms of market definition between casino games and bookmaking, which were generally thought to belong to different markets.

However with the emergence of the internet now gambling and betting have become borderless activities as websites setup anywhere in the world can solicit and play host to such activity being undertaken by individual even in jurisdictions where such activity is banned. According to some estimates gambling on cricket generates approximately Rs 300 crore annually, and that the figure shoots up to as high Rs 1,000 crore during important international tournaments like the India Premier League and the World Cup.

While there are no specific laws in India dealing with Internet gambling, online lottery and betting, however these activities are considered illegal, based upon the current government position on gambling in general. Wherever money is put at stake and the rest is left to luck, it is termed as gambling activity. Gambling per se is an offence since it does not involve skill and has been explicitly prohibited under the Public Gambling Act of 1867. Therefore, in public places like a club games such as flash or demand card (mang patta) are disallowed.

The Public Gambling Act under Section (3) of lays down "Penalty for owning or keeping, or having charge of a gaming-house". According to this section if the owner or occupier, or any other person having the use or charge, care or management of any house, opens, keeps or uses the same as a 'common gaming-house' and knowingly or willfully permits the same to be occupied, used or kept by any other person as a 'common gaming-house' shall be liable to a fine not exceeding two-hundred rupees, or to imprisonment for any term not exceeding three months, as defined in the Indian Penal Code (45 of 1860).

This section further lays down that whoever, advances or furnishes money for the purpose of gambling with persons frequenting such 'gaming-house' or in any manner assists in conducting, the business of such 'common gaming-house', in keeping it opened, occupied, used or kept for the purpose of being used as a 'common gaming-house' shall be liable to a fine not exceeding two-hundred rupees, or to imprisonment for any term not exceeding three months.

According to the Act, people can be held accountable if they are found playing in a 'gaming house'. A 'gaming house' has been defined as "any house, walled enclosure, room or place in which cards, dice, tables or other instruments of gaming are kept or used for the profit or gain of the person owning, occupying, using or keeping such house, enclosure, room or place, whether by way of charge for the use of the instruments of gaming, or of the house, enclosure, room or place, or otherwise howsoever."

Both the person owning the place and the one indulging in gambling in such a place can be arrested. Besides, section 9 of the Act further implies that in order to make such arrests or convict any person of keeping a common gaming- house, or of being concerned in the management of any common gaming- house, it shall not be necessary, to prove that such person was found playing at any game and was playing for money, wager or stake.

Thus the Public Gambling Act, makes gambling illegal i.e. when it's made a business to earn a profit or a commission. Besides, section 12 of the Act has specifically kept certain activities out of its purview. According to this section the provisions of the Act shall not apply to any game of 'mere skill wherever played'.

The term 'Gambling' as such has not defined in the Public Gambling Act 1867. However, according to Entry 34 of List II, under the Seventh Schedule to the Indian Constitution, "'gambling' includes any activity or undertaking whose determination is controlled or influenced by chance or accident and an activity or undertaking which is entered into or undertaken with consciousness of the risk of winning or losing, e.g., 'prize competitions, a wagering contract, .....Where there is no actual transfer of goods but only to pay or receive the difference according to the market price which varies from the contract price."

In my view, "The test of determining if a game is 'gambling' is whether dominant element is chance or skill. However, the legislation in India also does not define what "skill" means in the context of gambling. Based upon the interpretation of the courts in India it can be safely concluded that a game that does not involve skill or is a mixed game of chance and skill would not be treated as lawful in India." In the case of M.J. Sivani and Ors. V. State of Karnataka and Ors. 1995 6 SCC 289 the Supreme Court held that when in a game the element of chance strongly preponderate, it cannot be game of mere skill.

It has further been held by the Supreme Court of India, in Dr. KR Lakshmanan V.State of Tamil Nadu (1996) 2 SCC 226 that gaming is an act or practice of gambling on a game of chance. It is staking on chance where chance is the controlling factor. The test of determining if a game is 'gambling', is whether dominant element is chance or skill. It is also pertinent to note that no foreign direct investment is allowed in the betting/gambling/lottery industry in India. This rule is unambiguous and strictly applied.

As the Internet is still evolving, the laws will take some time catching up. The Indian legislature prohibits gambling in general and the same has been construed with regard to gambling on the Internet. However, unlike the American Internet Gambling Prohibition Act (Kyl's Bill), the Indian Government has as of date not implemented any specific law to deal with the issue of Internet Gambling. Although there are no laws that bar internet gambling specifically, the official government stance is that the existing laws governing gambling offline is sufficient enough to curb Internet gambling as well.

Besides, attempts at banning online gambling present technological and legal problems that the Indian government is not well equipped to counter. This is mainly for the reason that, tracking and locating Internet gambling activities has been a difficult task, exercising jurisdiction over these operations has been equally strenuous. Most gambling sites are situated offshore; outside the jurisdiction of Indian courts, making enforcement of punishment awarded by Indian authorities is difficult but not impossible.

The India IT Act has extra territorial jurisdiction with regard to computer related offence committed in India. Besides personal jurisdiction has also been exercised in several international cases involving the internet and the court asserted personal jurisdiction based on the nature of the 'gambling operations' web sited coupled with the intent to solicit business with residents of the other states as in US case Missouri ex rel. Nixon v. Interactive Gaming & Communications Corp and also in In State of Minnesota v. Granite Gate Resorts, Inc.."

Besides, many of the online betting websites are hosted in countries where such activity is legal and companies can contend that their activities are legal in countries where they operate and hence Indian laws cannot shut them down. Secondly, loss of evidence is a common problem since all data is routinely destroyed and collection of evidence from outside the territorial extent paralyses the system. It is also impossible to prevent a site that has been blocked from quickly changing its Web address and resuming operations.

Although there are no laws that bar internet gambling specifically, the official government stance is that the existing laws governing gambling offline is sufficient enough to curb Internet gambling as well.