Karnataka HC Issues Notice to State Govt For Permitting Online Betting on Horse Racing

Karnataka HC challenges Bangalore Turf Club bid for online betting
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  • Namita Ghosh November 4, 2020
  • 2 Minutes Read

Shuttered for months through the COVID-19 led lockdown, the country’s scattered but traditionally run Turf Clubs have suffered huge losses this year. Just when the Bangalore Turf Club (BTC) was about to make the pioneering move of launching online horserace-betting, a major legal hurdle has popped up.

Hearing a PIL seeking to stop online betting on horse racing, the Karnataka High Court at Bangalore has issued a notice to the state government. The plea has been submitted by C. Gopal, who argued that many states have banned online betting and gambling, and even pointed out that the Karnataka government had in 2017 banned online gambling and other types of lotteries. In his petition, Gopal even quoted a report by the Law Commission of India on India’s legalization of gambling.

Karnataka High Court at Bangalore

 

He stated – “The Gambling and Betting involve high risks as the outcome is uncertain, the mode of transaction involves money, property and with the revolution of internet technology, new dimensions have been opened up to process the mode of payment in the same and the Respondent No.3 is banking on the same to increase its revenue by spreading its tentacle beyond the limits at the cost of the society/public at large and making hectic efforts reach all sectors of people, students, youths, kids etc., with an intention to make profit and gain wrongfully.”

Reviewing the plea, the division bench of the Karnataka High Court at Bangalore comprising Chief Justice Abhay Shreeniwas Oka and Justice Vishwajith Shetty issued a notice to the BS Yeddyurappa-led state government questioning the legal basis on which BTC was given the go-ahead for online betting.

 

Online Betting – The Only Way Forward During the Pandemic

2020 has been a financial back-breaker for Turf Clubs across the country. Though these clubs charge fees from horse owners and the audience and get sponsorships, the club’s most significant source of revenue remains betting.

The issue is that all forms of betting on racing are confined within the premises of Turf Club, i.e., the tote and at licensed betting counters. The COVID-19 pandemic has restricted people’s gathering in public places, forcing the horseracing season into hibernation.

Even with things slowly opening up, it is unclear when things would go back to normal. Under such circumstances, the Bangalore Turf Club, similar to several other Turf Clubs in India, has been exploring the launch of an online app to accept bets. The app would allow punters to place bets on the races and receive dividends through a digital wallet. This, at least for the clubs, is no longer a means to promote gambling but more a question of survival.

Bangalore Turf Club

 

The BTC had applied to the government for permission in May, and the same month, the Karnataka state government gave its in-principle approval to the proposal. The BTC subsequently received permission from the Finance department to start the horseracing season, and the club had planned to kick off racing from October-end.

Taking a cue from BTC, even the Royal Calcutta Turf Club (RCTC) announced a curtailed Calcutta Cold Weather Season 2020-21 starting October 21.

Karnataka High Court’s objection to online betting on horseracing comes as a significant setback for the sector still struggling to get back on its feet after the pandemic. In case BTC is not permitted to go live with online betting, this could very likely set a negative precedent for the other Turf Clubs that are looking to come up with similar solutions to resume operations.

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