The Crossroads of Sports Governance, Ethics, and Law:
Introduction:
Far far from its idealized beginnings of pure athleticism and energetic camaraderie, the
modern world of sports now exists as a complicated and sometimes controversial junction of
economic interests, fast changing technologies, and sophisticated legal systems. This change
has produced a scene in which upholding the integrity of athletic events, guaranteeing fair
play for every competitor, and thereby defending the interests of a wide spectrum of players
presents hitherto unheard-of difficulties. Two historic rulings in India particularly highlight
this natural conflict: the 1996 ruling in Dr. K. R. Lakshmanan & Others v. State of Tamil
Nadu & Another and its more recent, though still somewhat mysterious counterpart, the 2024
Gambling-Betting-Judgment. In the continuous and sometimes turbulent fight of the country
to find a sustainable balance between the search of economic possibilities and the
preservation of basic ethical values in the field of sports governance, these cases act as vital
touchstones.
These court rulings not only highlight the urgent need for more legislative clarity and
improved institutional responsibility but also underline the vital need of creating and
supporting athlete-centric dispute resolution systems that can efficiently handle the particular
difficulties and complexity inherent in the contemporary athletic arena. Driven by television
rights deals, sponsorship agreements, and the expanding online betting market, the
commercialization of sports is accelerating and raises dramatically the possibility for
conflicts of interest and ethical violations. Often young and fragile, athletes find themselves
at the center of this maelstrom under great pressure to succeed, follow rigorous rules, and
fight the temptations of corruption.
This reflection essay aims to offer a thorough analysis of how India's fragmented and often
antiquated legal approach to gambling and betting, a framework firmly anchored in colonial-
era statutes and greatly exacerbated by the relentless march of technological advancements,
has unintentionally created systematic vulnerabilities inside the sports governance systems of
the country. This essay will convincingly advocate the immediate application of a uniform
and comprehensive national regulatory framework by making perceptive analogies between
fundamental court precedents and the harsh reality of modern difficulties. Effective battle of
the widespread menace of corruption, protection of the rights and interests of all stakeholders,
and finally alignment of India's sports governance procedures with internationally recognized
criteria of integrity and ethical behavior depend on such a framework.
Historical Context:
Skill vs. Chance—the Lakshmanan Judgment and Its Legacy:
Under the current gambling rules of Tamil Nadu, the historic legal struggle in its own right,
the Dr. K. R. Lakshmanan case, focused on the basic question of the constitutional legitimacy
of taxing horse racing. In a watershed moment, the Supreme Court of India rendered a
complex ruling trying to separate what it defined as "games of skill," which included horse
racing, where knowledge, strategy, and experience were judged to be rather important, from
"games of chance," such lotteries, where the outcome was essentially determined by random
selection or unpredictable events. Reflecting a respect of the unique qualities and possible
economic contributions of skill-based activities, the court's decision to exempt games of skill
from the purview of gambling restrictions was praised as progressive for its time. In
retrospect, though, it is abundantly evident that this apparently forward-looking decision also
unintentionally set off a chain of unanticipated events still resonating across the Indian sports
scene today. Among these unforeseen results was the development of a regulatory uncertainty
that has dogged the sports governance system of the country for many years.
The Supreme Court essentially let separate states within India to adopt divergent and
sometimes contradictory definitions of what constituted a skill-based activity by using
imprecise and open to interpretation definition of "skill." This lack of consistency has
produced a patchwork of rules all throughout the nation that provides a rich field for legal
challenges, jurisdictional conflicts, and the exploitation of gaps by dishonest operators. For
example, Sikkim, which saw the possibility for income generation, was early in 2008 in
introducing online sports betting, therefore establishing itself as a leader in the developing
digital gaming scene. In sharp contrast, the state of Maharashtra elected to pursue a
significantly more conservative approach, criminalizing online sports betting under the strict
terms of the Bombay Prevention of Gambling Act, citing issues about the possible for social
harm and the degradation of ethical norms. This difference in legislative policies has resulted
in a situation whereby the legality of online sports betting can vary greatly depending on the
geographical location of the bettor, therefore generating uncertainty, ambiguity, and
inconsistent enforcement.
Furthermore, the uncertainty around the definition of "skill" has given illegal operators
chances to take advantage of jurisdictional gaps, usually setting up operations in states with
more relaxed laws and subsequently focusing on consumers in states where such activities are
outright forbidden. The shocking scope of this issue was exposed in a 2023 Central Bureau
of Investigation (CBI) report, which exposed a large network of illegal betting syndicates
using a convoluted web of shell companies registered in the state of Sikkim to funnel an
estimated ₹12,000 crore in illicit proceeds from Indian Premier League (IPL). This case
reminds us sharply of the difficulties resulting from regulatory fragmentation and the pressing
necessity of a more unified and coordinated strategy to sports gambling control in India.
2. The Demand for Modernity:
Although the complete content and particular details of the 2024 Gambling-Betting-Judgment
remain somewhat limited and subject to conjecture, its timing and general context strongly
imply that it represents a major attempt to address the challenges and complexity that have
evolved in the wake of the Lakshmanan judgment. Given the fast speed of technology
progress and the growing internationalization of the sports sector, it is quite likely that the
2024 ruling addresses multiple important issues that were merely not on the radar in 1996.
Among these problems is the explosion of digital betting platforms, including those running
with cryptocurrency and those providing artificial intelligence-driven fantasy sports games.
The emergence of these digital platforms has opened fresh prospects for both legal companies
and illegal operations, blurring the boundaries between talent and chance and making it ever
more difficult for authorities to keep up with the always shifting terrain. Particularly
cryptocurrency-based betting presents great issues because of its distributed character,
anonymity possibilities, and difficulty tracking and control of cross-border transactions. The
difficulty of cross-border enforcement against offshore betting providers, notably Bet365 and
1xBet, who frequently target Indian consumers despite not being licensed or regulated in
India, raises still another important area of issue. It is quite difficult to hold these operators
responsible for their activities since they regularly take advantage of legal gaps in
international law and the lack of coordination among regulatory authorities throughout
different nations. Moreover, the 2024 decision most certainly tackles the rising issue of
athlete exploitation, especially in relation to unbridled betting markets.
According to a 2024 Law Commission of India assessment, unethical betting syndicates are
coercing or pressuring athletes—often young and vulnerable—into match-fixing or spot-
fixing activity. This exploitation not only compromises the integrity of sports but also has
terrible effects on the players themselves, who might be subject to criminal charges or even
bans from competition.
Governance Challenges in Modern Sports:
1. Regulatory Fragmentation:
Modern sports provide governance issues like regulatory fragmentation, a heaven for
corruption. India's sports governance system suffers from a widespread regulatory
fragmentation, as was already mentioned; this can be described as a "triple fragmentation"
given its multifarious character. There are three main areas where this fragmentation shows
itself, each of which adds to the general ineffectiveness and complexity of the system:
• State versus. central laws: The inherent disagreement between the laws passed at the
federal level and those passed by individual states is among the most important causes of
fragmentation. Although a remnant of British colonial control, the Public Gambling Act of
1867 still serves as the fundamental law controlling gambling in India; its clauses often
contradict the more liberal and permissive laws embraced by some governments. For
instance, although the Public Gambling Act generally forbids most kinds of betting and
gambling, states like Goa and Sikkim have created exceptions to this regulation permitting
the licensing and operation of casinos and online gaming platforms inside their respective
territories. This differences in regulatory policies produce a complicated and sometimes
perplexing legal environment that makes it challenging for consumers and operators to know
their rights and responsibilities.
• Rules specific to sports: The fact that various sports in India are run under separate
regulatory organizations, each with their own set of policies, rules, and anti-corruption
measures, adds still another degree of fragmentation. Because some sports leagues may have
more strong and efficient systems for spotting and prosecuting corruption than others, this
lack of consistency can result in notable enforcement differences. For instance, the
regulatory body for cricket in India, the Board of Control for Cricket in India (BCCI), has set
up an Anti-Corruption Unit (ACU) with great authority to probe and punish instances of
match-fixing and other kinds of corruption. Other sports, including kabaddi and football,
might lack the means or knowledge to fight corruption, thus they are more open target for
dishonest betting syndicates.
• Asymmetrical technology: At last, the fast speed of technological innovation has resulted
in a scenario of technological asymmetry whereby regulatory systems find it difficult to keep
up with the rise of fresh kinds of online betting and gaming. Particularly for blockchain-
based betting companies, which run on cryptocurrencies and distributed ledger technology,
authorities now face major difficulties. Tracking and controlling their actions is quite
challenging since these platforms frequently run beyond national authorities' authority and
skirt conventional banking rules. One notable instance of this difficulty is the government
crackdown in Tamil Nadu on the usage of popular bitcoin wallet MetaMask wallets to enable
illicit betting transactions. Given this convoluted regulatory environment, it is hardly
surprising that corruption remains a main issue in Indian sports. The absence of a consistent
and well-coordinated strategy for sports gambling control opens chances for dishonest
operators to take advantage of weaknesses, hide themselves, and compromise the integrity of
athletic events.
Case Study: Comparison of the MPL in 2023 vs Karnataka State Conflict:
The 2023 conflict between famous online gaming platform Mobile Premier League (MPL),
and the state government of Karnataka serves as a particularly striking illustration of the
difficulties caused by regulatory fragmentation. Under its gambling rules, the Karnataka
government prohibited MPL in this instance claiming that the games on the site were mostly
focused on chance rather than ability and could be addicting and detrimental to users.
Telangana's state government, on the other hand, let MPL operate inside its territory under the
exception for games of skill. For MPL and its consumers, this contradictory legislative
approach generated great uncertainty that emphasizes the need of a more uniform and unified
legal framework for online gambling in India.
2. Ethical erosion from playing fields to boardrooms:
While addressing the taxes of horse racing, the Lakshmanan ruling unintentionally missed the
more general ethical hazards connected with sports betting. With effects that go much
beyond the racetrack, this limited concentration has helped to gradually erode ethical values
inside the Indian sports scene.
• Fixing Match-fixes: Syndicates attributing a startling trend attributing a startling 47% of
India's unlawful betting income to match-fixing activities in cricket, a 2024 research by the
Federation of Indian Chambers of Commerce and Industry (FICCI) exposed. This result
emphasizes the widespread impact of organized crime in the sports betting industry and the
pressing necessity of more successful policies to fight corruption.
• Groundwork Exploration: The ethical decline also reaches down to the grassroots level
of sports, where young, aspirational players are sometimes very easily exploited. During a
2024 internship with a sports NGO, I had the chance to interview a kabaddi player who
related a horrific story of being solicited by betting syndicates with promises of ₹50,000 to
underperform in a match. With his paltry pay of just ₹800 each match, this offer contrasted
sharply with the financial desperation that may cause players to sacrifice their ethics.
• Youth Vulnerability: Young individuals, who could be more prone to the seduction of
gambling and the temptation to fit in with peer standards, have especially great ethical
vulnerabilities. According to the All India Gaming Federation, as many as 23% of fantasy
sports users are juveniles using parental IDs to get around age limits. This calls major
questions regarding the possibility of addiction, financial damage, and exposure to unsuitable
content.
Mechanisms of dispute resolution: Gaps & Innovations:
Courts' Restraints:
Although the courts are essential for maintaining the rule of law and settling
problems, they are not usually suited to deal with the particular difficulties and
complexity of sports-related disagreements. Many elements influence this restriction:
• Delayed Justice: Often resolving even somewhat simple issues takes years, thus the
legal procedure can be tedious and taxing. The Lakshmanan case itself highlighted
the delays that could afflict the Indian court system since it took eight years to get at a
decision. Comparably, the six-year arbitration between the BCCI and the IPL team
Kochi Tuskers went on before a verdict was decided upon. Particularly in the fast-
paced world of sports, where time is of the essence, these delays might compromise
the efficiency of conflict resolving systems.
• Outdated Precedents: Often based on antiquated ideas and assumptions that
neglect to sufficiently reflect the reality of modern sports, the legal precedents guiding
court decision-making are For instance, the "skill vs. chance" test—which has been
used to decide whether different kinds of gambling are legal—finds it challenging to
keep up with the sophistication of AI-manipulated odds in apps like Dream11,
therefore affecting the application of the law in a fair and consistent basis.
Reforms anchored on the Lakshmanan Principles: The Road Forward:
1. Modernizing Legislation: India has to completely review its gaming and betting
legislation if it is to solve the systematic weaknesses brought about by regulatory
fragmentation and technology developments. Several important ideas should
direct this modernizing process:
• Uniform Sports Gambling Code: A centralized system with customized rules
that ranks sports into danger categories—that is, High-danger: Cricket; Low-Risk:
Chess. This would improve enforcement by helping to guarantee consistency
across many states and sports, hence closing jurisdictional gaps. Establishing a
National Sports Gambling Commission inspired by the UK's Gambling
Commission would give license operators a consolidated authority to audit
transactions, license operators, and enforce ethical standards.
Additionally, serving as a focal point for organizing anti-corruption initiatives and
supporting athletes and other stakeholders is this body.
2. Integration of Technology: Technology provides strong instruments to improve
sports betting transparency and control. Using blockchain technology to establish
public ledgers for betting transactions would help to greatly lower unlawful
activity. Using blockchain to track and confirm transactions, Tamil Nadu's 2024
pilot project showed a 43% drop in unlawful betting. The ICC's 2023 AI system
effectively identified 92% of unusual betting patterns in real time, therefore
demonstrating the possibility of artificial intelligence to find and stop match-
fixing.
• Biometric Verification: As suggested in Rajasistan's 2024 legislation,
mandating Aadhaar-based age checks for betting applications will help to avoid
underage betting and guarantee legal age compliance.
3. Athlete Activism: Maintaining sports' integrity depends on keeping athletes free
from exploitation and guaranteeing their welfare. This is accomplished by:
• Standardized Contracts: The Federation of Indian Sports Associations (FISA)
suggests measures criminalizing betting coercion and granting sportsmen under
pressure into match-fixing legal remedy. Initiatives like SportzWell provide
counseling services addressing the psychological consequences of exploitation for
athletes targeted by betting syndicates, therefore supporting mental health.
Personal Views: Ethics against Economics:
One finds a commercialization dilemma:
The Lakshmanan ruling gave income (from taxing horse racing) top priority over
morality. With India's sports betting market expected to exceed ₹15 trillion by
2026, this balance needs to change today. I discovered during a 2024 conference
with sports attorneys that media rights transactions sometimes supersede ethical
considerations—a process lacking legislative checks. The commercialization of
sports has produced a society whereby ethical issues can be subordinated to
financial interests, therefore compromising the very core of sports.
Grassroots Reality:
Dealing with rural sportsmen exposed systematic neglect:
• Lack of Awareness: The anti-corruption helpline of the BCCI went unknown to
68% of junior athletes from Haryana.
• Institutional Apathy: The 2023 National Sports Ethics Code has been adopted
by just twelve states. Athletes who lack awareness and institutional backing are
more prone to be exploited and compromises attempts at grassroots level integrity.
Conclusion:
In essence, recovering the soul of sports. The Dr. Lakshmanan case and the 2024
ruling are more than just legal relics; they are tools for reinterpretation of sports
governance. India needs a three-pronged transformation:
1. Legislative: To replace antiquated state rules, a uniform code on sports
gambling.
2. Technologically, blockchain and artificial intelligence can help to democratize
control.
3. Programmes for ethical learning for sportsmen, managers, and supporters.
As the 2024 ruling most certainly emphasizes, the stakes define the soul of sports
and go beyond mere legality. India can rise from a regulatory laggard to a
worldwide leader in sports integrity by learning from previous mistakes and
welcoming innovation. At all tiers of sports governance, this change calls for a
dedication to openness, responsibility, and moral behavior.
