Gambling as a Transnational Crime in 21 st Century
Submitted to Mr. Manoj Kumar (Faculty: Transnational crime & law)
Submitted by Anant Ekka Section A Roll No: 26 Semester VIII B.A.LL.B(Hons.) Submitted on: 7/04/2017
HIDAYATULLAH NATIONAL LAW UNIVERSITY, RAIPUR (C.G.)
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Acknowledgement The successful completion of any task would be, but incomplete, without the mention of people who made it possible and whose constant guidance and encouragement crowned my effort with success. I would like to thank my course teacher Mr. Manoj Kumar for providing me the topic of my interest. Secondly, I would like to thank our Vice Chancellor for providing the best possible facilities of I.T and library in the university. I would also like to extend my warm and sincere thanks to all my colleagues, who contributed in numerable ways in the accomplishment of this project.
Thanking you, Anant Ekka Semester VIII
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Contents Acknowledgments…………………………………………………………………… 2 Research Methodology……………………………………………………………......4 Objectives...…………………………………………………………………………...4 Introduction...................................................................................................................5 Gambling and crime.......................................................................................................6 Gambling in India..........................................................................................................9 Reasons people become addicted to gambling............................................................12 Effects of gambling......................................................................................................13 Conclusion…………………………………………………………………………....15
Webliography………………………………………………………………………...16
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Research Methodology This research project is Non-Doctrinal in nature since it is largely based on secondary & electronic sources of data and also since there is no field work involved while producing this research and it is not empirical in nature.
Objective
To study about gambling.
To study about relation between gambling and crime.
To study about gambling addiction.
To study effects of gambling.
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Introduction Gambling has been practise from the ancient time. It has cultural, religious and traditional aspect also. Therefore it has a long history. This activity may be legal or illegal according to time and place. In Canada, gambling is legal. Private bets between people’s life, card games, sports bet are
also legal in Canada. The criminal code of Canada focuses very much on venue that are allowing gambling, rather than stopping them. Gambling can be said to be the act of risking money or equivalent on an uncertain chance of winning a large amount of money or other goods. Risk factor plays a very vital role in gambling. One may gamble gold, diamond etc. with an object to derive huge profit. Therefore, it is a game of chance or risk. When one is involved in it, he tries to test his fortune. In India, it has a long history and people have been found trying to test their luck in ancient literature. There are so many forms of gambling like playing dice etc. In some situation it may involve some skill like for playing cards, playing chess etc. Horse track bets are another example of gambling in which skill is required. The game of dice was also based on skill. The legend example we find in Mahabharata, where Shakuni was master of dice game. There are other forms of gambling which are purely based on chance like slot machines, lottery etc. Popularly gambling is specifically referred to game of chance such as lottery tickets, bingo, sport betting, casino games etc. Investment in stock market is also a gambling. Gambling has religious perspective also. Firstly, monotheist who believe in existence of one god, for them gambling is a sin like Christianity, Islam holds gambling as a sin. Those who don’t follow monotheism i.e. polytheist, believe g ambling is not a sin. They often use it as a means of testing one’s fate. They are receptive of gambling.
Therefore gambling is condemned in Islam. Historical evidence of gambling in India can be found in Mahabharata, where Yudhisthir lost everything because of gambling.
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Gambling and Crime Gambling is often associated with crime. The relationship is easy to understand. Many types of gambling have been, indeed still are, illegal. Hence, by definition, criminals were the only operators of games. When gambling restrictions were relaxed, criminals were the first to open up legal gambling establishments. A lax regulatory framework in Nevada did not prevent members of organized crime from openly owning and operating casinos. To some degree, Nevada needed the criminals to make gambling viable because no one else had their expertise and experience. Up to the 1960s, Nevada had a Difficult Time Keeping Mobsters out of the Casinos. Nevada was plagued by teamster financing, hidden ownership, employment of individuals of questionable character and background, and the clear links to organized crime.In this context, organized crime doesn't just mean Mafia. Nevada improved its regulation only under the threat of federal intervention. The federal government believed, with good reason, that Nevada casinos were fueling organized crime throughout the country. Because of this history, the concern about organized crime usually is raised whenever legalizing gambling is discussed. Even when New Hampshire began its state lottery in 1964, there was concern that organized crime would take over. Much has changed since the days when Bugsy Siegel started the first modern casino in Las Vegas. Organized crime has become part of the mystique of gambling but it is without significant influence today. Las Vegas and the Flamingo are part of an historical association with organized crime. Modern Casino Gaming Has Safeguards to Protect Against Organized Crime. Casino gaming has become one of the most highly regulated industries in America. The companies and individuals involved are very carefully scrutinized and held to extremely high standards. The organized crime scare is simply that, a scare according to many observers. Gambling is indeed associated with crime, specifically political corruption. The casino companies suggest that they are devoid of organized crime influence because they are: 1. Dominated by publicly-held companies, many with household names like Hilton and Sheraton.
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2. Answerable to their shareholders who are thousands of individuals and institutional investors. 3. Answerable to the Securities Exchange Commission. 4. Indistinguishable from any other business with accountants, attorneys, payroll specialists, auditors, and market researchers. 5. Licensed and tightly-regulated by state governments. Nevertheless, there remains an ever present concern about organized crime. The sheer volume of money, cash in particular, that is generated by gambling, makes it a tempting target. Organized crime has been successful infiltrating ancillary businesses such as machine maintenance or those that provide other services.Often labour unions are used as the vehicle to carry out the infiltration. There are examples of organized crime infiltration. For example, as discussed in the section on gambling and politics, the FBI is investigating allegations that Louisiana state legislators took multimillion dollar payoffs to approve an expansion of video poker. The individuals attempting to buy influence were connected to organized crime families. Researchers state that organized crime is more of a product of illegal or poorly regulated gambling than well-regulated gambling. That is especially worrisome because gambling isn't just done within the large casinos. There are many other gambling opportunities and not all are as well-regulated or as free of organized crime influence as casinos. In California, cardrooms and Indian casinos have been a focus of concern about criminal infiltration. All kinds of gambling, including lottery, slot machines, cards, and many others, are considered among the things that attract a lot of people. Even in the oldest civilizations, people always wanted to bet on things and events, because it is in their nature to take risks to win or lose. Taking risks is a habit and part of human nature, but getting in the habit of taking risks all the time, especially for material gain or loss can be a very destructive thing to do. Gambling does not only waste common sense and the mind, but it also makes people unable to control their emotions. Gambling is one of the worst habits that individuals may develop. When people buy lottery cards, roll the dice on the roulette tables, or when they simply play poker, they are betting on their luck which is something superstitious. Because man always wants to believe in superstitions and things that are abnormal, he is ready to take any risk in order to win. Sometimes it is not only about winning the money, but simply about winning and having luck on one’s side. The problem is that gambling can become a sickne ss that 7
controls man’s mind. For example, there are people who spend all their money on the
gambling tables, or simply neglect buying things their children need in order to buy many lottery cards on Christmas or New Year because they hope luck will be on their side. Another aspect about gambling is that we know that it is wrong. However, when people are gambling, everybody stands around to watch. Sometimes the crowd watching events such as running the lottery wheels, watching cocks quarrelling, dogs racing, or other events, can lose control and become involved in the lottery. These people have nothing to win or lose because they are not playing. However, they become involved because they have lost control over their emotions as they think of the risks and the outcomes of the game. Gambling is certainly a human invention. It may have been invented by people who like to bet on risks and on winnings. However, once a person starts gambling, even over small amounts of money, it turns into an ugly habit that rules and ruins the life of the gambler. A gambler is someone who is ready to lose everything, even his humanity for gambling. People in general hate gambling and gamblers, but they are ready to watch when gambling takes place, and if they get involved, it is very hard to stop them. They become out of control, just like gambling itself. To stay safe, one should therefore stay out of gambling, betting and lotteries, because there is no warning red line which one can use to be aware of what will come next.1
1
https://www.theuniversitypapers.com/gambling-essay/
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Gambling in India Gambling in India is heavily restricted except for selective categories including lotteries and
horse racing. In the 21st century, more people have started making cash bets upon prohibited betting and gambling activities in India. The critics of gambling claim that it leads to crime, corruption and money laundering while those in favour of a regulated gambling system in India argue that it can be a huge source of revenue for the state. Casinos in Goa contributed Rs. 135 crores to the state revenue in 2013. Currently, casinos operate in Goa, Daman and Sikkim.
Legality: Gambling is a state subject and only states in India are entitled to formulate laws for gambling activities within their respective states. The Public Gambling Act of 1867 is a central law that prohibits running or being in charge of a public gaming house. The penalty for breaking this law is a fine of ₹200 or imprisonment of up to 3 months. Additionally, this Act prohibits visiting gambling houses. A fine of ₹100 or imprisonment of up to one month is the penalty. Indian law classifies games into two broad categories viz. game of skill and game of chance. The Supreme Court of India has, for instance, heldThe game of Rummy is not a game entirely of chance like the ‘three-card’ game mentioned in the Madras case to which we were referred. The ‘three card’ game which goes under different names such as ‘flush’, ‘brag’ etc. is a game of pure chance. Rummy, on the other hand, requires a certain amount of skill because the fall of the cards has to be memorised and the building up of Rummy requires considerable skill in holding and discarding cards. We cannot, therefore, say that the game of Rummy is a game of entire chance. It is mainly and preponderantly a game of skill.
The Information Technology Act 2000 regulates cyber activities in India and prohibits publication or transmission of information that can corrupt people. This includes online gambling and the punishment for such activities is much more serious than for offline
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gambling operations – the fine is ₹100,000 or imprisonment up to 5 years. Further, online gambling is a banned offense in the state of Maharashtra under the "Bombay Wager Act". Only three states allow casinos, Goa , Daman and Sikkim. There are two casinos in Sikkim called Casino Sikkim and Casino Mahjong and 10 in Goa, of which six are land based and four are floating casinos that operate on the Mandovi River. The floating casinos in Goa are Casino Deltin Royale, Casino Deltin Jaqk, Casino Pride and Casino Pride 2. While the first two are controlled by the Deltin Group, the latter two are managed by the Pride Group. According to the Goa, Daman and Diu Public Gambling Act, 1976 casinos can be set up only at five star hotels or offshore vessels with the prior permission of the government. This has led the Deltin Group to open the first land based Casino in Daman which is set to open soon. News reports also suggest that Visakhapatnam is also being looked on as the next casino destination. The penalty for being caught gambling online has been a fine of Rs. 9000 per day since 2009.
Online: Online gambling is in its infancy in India, but Sikkim planned to offer three online gambling licences in 2010. This failed despite India being the most sought out country for online gambling. Sikkim also permits an online lottery, which takes bets from players throughout India. It was expected that other states would follow Sikkim, thereby opening up a major online gambling market throughout India.
Legalisation: Despite the existing prohibitive legislations, there is extensive illegal gambling throughout the country. The Indian gambling market is estimated to be worth US$60 billion per year, of which about half is illegally bet. According to the Indian National Newspaper, the Chief Executive officer for the International Cricket Council (ICC) said he was in favour of legalising sports betting. He believes the illegal funds profited are through underground bookies that used the money to fund terrorism and drugs. Many Indian professionals as well
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as online forums have urged the government to introduce legal but regulated gambling in India to bring the gambling economy out of the grip of mafia and underground dons.
Payment Gateways: One of the biggest obstacles faced by sports bettors in India is the fact that depositing to foreign bookies is extremely difficult. Typically, the majority of users deposit to online bookies using Money bookers or Neteller. Some attempts to deposit using a Visa or MasterCard may fail. The same is true of online bank transfers. In order to circumvent these blocks, savvy internet users have started to use e-wallet services for depositing. These services add a middle layer to disguise the nature of transactions, enabling users to get around the blocks by first depositing to an e-wallet and then using that e-wallet to fund an online betting account in Rupees. This is important because it circumvents legal issues that may have arisen about Foreign Exchange law.
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Reasons people become addicted to gambling There are 6 main reasons people become addicted to gambling.2 They are:
1. To cope with traumatic life experiences. People gamble to avoid uncomfortable or painful emotions, including sadness (passing of loved ones), guilt, shame, anger, humiliation, failure and frustration. Gambling provides the illusion of control in uncontrollable situations and environments.
2. To chase losses. Chasing past losses is the result of experiencing early wins. After a winning streak, the gambler is deluded with the idea of the "Big Win." The gambler thinks that through this Big Win, his or her bills will be paid and problems solved. The Big Win is an illusion that keeps the gambler in action until he or she admits there is a problem and seeks help. 3. As a form of stimulation. Some people knowingly or unknowingly seek the risky, naughty, thrill-seeking lifestyle through gambling. They surrender to their impulses and gambling acts as a drug that is as powerful as any available. 4. As a coping mechanism. Problem gamblers seek the "zone out" or "in my own little world" effect. They feel the need to escape the stress, demands, and pressures of daily life. 5. To climb the economic ladder. Some gamblers have the illusion, indoctrinated through advertising, that gambling can provide a steady income and money will solve their problems. 6. To self-sabotage their success. Some problem gamblers feel uncomfortable with, guilty about, or undeserving of their success. Gambling is used as a tool for selfdestruction. The reasons behind their need for self-destruction are rooted in the past which psychology can explain.
2
http://www.gamblinghelper.com/gambling_addiction/page/an_introduction_to_gambling_addiction
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Effects of Gambling
During people's life, they develop empirical knowledge about many things. Knowing is the power that everyone has to decide which information is right or wrong to face big challenges and succeed when taking the decisions. All possibilities in this life might be good within the constraints; however, when people take themselves to an abusive level of necessity, it becomes dangerous for them and all those surround them. Gambling has a number of negative effects that distinguish it from other challenging activities; some of these issues are: addictions, family problems and bankruptcy. Firstly, gambling is apparently an entertainment industry where many end up being innocent victims of addictions such as alcoholism and lies. Society should be able to resolve its problems without depending on external agents, but people have point breaks. Because casinos provide free alcohol to their customers, they could easily get alcohol problems; while gamblers spend money on their bets, they are drinking alcohol. For example, if you are not a consumer of alcohol in exercise, it does easier to enter the spirit world, but those who are heavy drinkers it increases their addiction. Furthermore, compulsive gamblers usually tell lies because they seek to hide their gamble habits; they begin to distort their actions to their partners, friends and even at work. For instance, sometimes bettors gamble in secret, or they do not tell how much time or money they spend; instead, they often create stories to try to justify their activities. Gamblers believe on fake hopes that they will surprise themselves with a big win some day. Compulsive Gambling can be addicted to the adventure of the risk. An addictive gambler is anxious of winning and will tend to play with games that involve other players, so they can feel the adrenaline rush. In addition, gambling brings family problems because gaming causes emotional issues, and it has an impact on children. Whether bettors have just discovered a gambling problem, or they have been living with it for a period; they may feel destroyed by the magnitude of the problem. For example, if gamblers have feelings of desperation, they feel like their assumptions are consumed by the problem they are dealing. They might handle that they need to separate from their couple at least for a period of time. Emotions of this nature are common when they are approaching the complex issues that emerge as a result of a gambling problem. Moreover, being a person with gambling issues at home can affect children in many ways. For example, gamblers spend less time with their families is due to they invest a lot of 13
time in casinos; therefore, children think that they parents do not love them anymore. These troubles can leave a family feeling frustrated and even worse if the gamblers are fighting over money. It can frighten the relationship. If the family is the core of the society, gambling for any reason could harm the family members because in the family people acquire respect for a moral values in the society. Another negative effect of gambling is a financial crisis; many gamblers accumulate thousands of dollars of debt without knowing. Borrowing money and selling personal items to gamble are signs of aggravated indebtedness. First, Acquiring money from banks and credit cards with the hopes that they can win back their losses is just a way to create long term financial issues for both players and family. For example, while Antony's wife is fast asleep, Antony spends hours in front of the computer gambling online; authorizing automatic withdraws from his bank accounts and credit cards. They are behind on bills, and the couple gets threatening calls from collection agents on past loans. Thus, his annoyed wife finds that the online gambling losses are the cause that add up to hundreds of dollars a month. Gamblers often say that they do not know where the money is going if they really do not spend too much. Second, Family investments usually are diminished because the gambler seeks more and more resources with which to gamble. For example, a gambler who manages the family finances could liquidate the all family's properties such as: houses, cars, etc theses possessions may be faded or lost. Consequently, individual beliefs might change when they face beyond their limit, trying to get back their losses.3
3
https://www.ukessays.com/essays/sociology/effects-of-gambling.php
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Conclusion Gambling is a bad habit. Yet it is an old habit that existed in ancient India. We learn from our epics that the Pandavas and the Kauravas used to gamble. People gamble because they want to get rich quickly. Gambling is a kind of short cut to riches. Everyone would like to follow an easy way to make money. There are different forms of gambling. Some may gamble with cards or dice, others may bet on horses. Buying lottery tickets and trying cross- word puzzles are other forms of gambling. Some forms of gambling like cards, dice etc. are illicit. Others are permitted by the law. These are crosswords, lotteries and horse-racing. Illicit forms of gambling should not be encouraged by people. Even buying lotteries or betting on horses should be done within limits. The disadvantage of gambling is that it becomes a craze. Gamblers neglect their families. They spend all their earnings on gambling. They hardly ever win any money. When they lose money by gambling, they sometimes commit suicide. Many families have been ruined by gambling. So gambling should be avoided.
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Webliography
www.preservearticles.com
www.ukessays.com
www.theuniversitypapers.com
www.gamblinghelper.com
www.scotpho.org.uk
hamrah.co
www.nap.edu
www.library.ca.gov
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