The Public Gaming Act, 1867 was enacted with the object of preventing (i) gambling in a public place and (ii) the keeping of the common gaming-houses and to provide for the punishment of public gambling and the keeping of common gaming houses. The term ‘Gambling’ per-se has not been defined in the Public Gambling Act 1867 and the terms – gambling, gaming, betting and wagering are the terms which are often used synonymously, and of all ‘Gambling’ being regarded as embracing all the terms. The term ‘Gaming’ too has not been defined under the Indian Gambling laws, however, an inference can be drawn from the English Betting and Gaming Act, 1960, wherein its is defined as “playing of a game of chance and skill combined, and a pretended game of chance and skill combined, but not any athletic game or sport”. Also, in light of various case laws so far dealt by the Indian courts, it has been observed that the term ‘gaming’ generally denotes playing at any game whether of chance or skill (or mixed chance and skill) for money or money’s worth.
A game can be (i) a game of chance or (ii) a game of skill or (iii) a mixed games of chance and skill. In a very relevant case in this regard of Dr. KR Lakshmanan v/s State of Tamil Nadu, the Supreme Court of India held that gaming is an act or practice of gambling on a game of chance and the test of determining if a game is ‘gambling’, is whether dominant element is chance or skill. Hence, the test of determining if a game is ‘gambling’ is whether dominant element is ‘chance’ or ‘skill’. Again, the legislation in India does not define the terms ‘skill’ or ‘chance’ for the purposes of gambling, however, based upon the interpretation of the Indian courts, it can be 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.
Whether or not a particular activity will be considered gambling will depend greatly on the amount of skill required in comparison to the amount of chance. Games and activities where the element of chance predominates will likely be considered Gambling and where the element of skill predominates, such games and activities may be exempted from the prohibition, such as betting on horseracing.
Source- (1996) 2 SCC 226 (1996) 2 SCC 226; 1995 6 SCC 289; 1968 SCR (2) 387