Gambling Ordinance Hong Kong
The Gambling Ordinance was enacted in 1977 to regulate gambling in Hong Kong.[1] People are allowed gamble for leisure and entertainment within these regulations at a limited number of authorized outlets. Social gambling is still allowed.
Legality[edit]
The government of Hong Kong restricts organized gambling to a few regulated outlets. The government enacted the Gambling Ordinance in 1977 to rein in excessive gambling while still providing gambling to the populace.[2] Gambling involving a bookmaker is illegal in Hong Kong.[2] Betting with a bookmaker and betting in a place other than a gambling establishment is illegal. The Hong Kong Jockey Club holds a government-granted monopoly on horse races, football matches, and lotteries. The revenue the club generates from various wagers makes it the largest taxpayer for the government.[3]
Hong Kong generates the largest horse race gambling turnover in the world. The Hong Kong Jockey Club founded in 1884, holds a monopoly on horse racing wagers, lotteries and football betting and is the largest taxpayer to the government.[3] In 2009, Hong Kong generated an average US$12.7 million in gambling turnover per race 6 times larger than its closest rival France at US$2 million while the United States only generated $250,000.[4]
Hong Kong Gambling Ordinance block from New Orleans Boardwalk, this hotel offers classically furnished rooms with free Wi-Fi and a cable TV with HBO channels.
- In Hong Kong, the Gambling Ordinance (Cap. 148), which regulates gaming activities, was enacted in 1977 and was amended several times between 1980 and 2006. It is the Government's policy not to encourage gambling.
- Various forms of gambling in Hong Kong are legal under the Gambling Ordinance from 1977 and the Gambling (Amendment) Ordinance from 2002 and the Betting Duty Ordinance. According to the Gambling Ordinance (Cap. 148), all gambling activities in Hong Kong are illegal except those authorized by the Government which includes authorized horse racing, football betting and Mark Six lottery, as well as.
During the 2014-2015 racing season the Hong Kong Jockey Club attracted about HK$138.8 million (US$17.86 million) per race more that any other track in the world. Hong Kong Jockey Club broke its own record during the 2016-2017 season with a turnover of HK$216.5 billion and paid the government HK$21.7 billion in duty and profits tax, an all-time high.[5]
Charities[edit]
Hong Kong has charities which have a goal to promoting responsible gambling practices among those who gamble and to minimizing the negative effects of problem gambling. Such charities also look for a balance between meeting the demand for gambling and maximizing the social and economic benefits of gambling for the community, while helping to minimize potential harm to individuals and the community.[2]
Recent events[edit]
During the 2010 World Cup, police arrested 25 people for having an illegal gambling ring that took bets on World Cup matches worth more than 66 million Hong Kong dollars. Earlier in the year the Hong Kong police set up a task force to help stop illegal football gambling.[6]
See also[edit]
References[edit]
- ^Deans, R. (2001). Online gambling: changes to Hong Kong's gambling legislation. Gaming Law Review., 5(6), Retrieved from http://www.liebertonline.com/doi/abs/10.1089/109218801753336166?journalCode=glrdoi:10.1089/109218801753336166
- ^ abc'Responsible gambling policy'. Hong Kong Jockey Club. Retrieved 24 May 2015.
- ^ abBalfour, Fredrick (22 February 2016). 'Hong Kong Horse Racing Is Serious Business'. Bloomberg.com. Retrieved 7 March 2018.
- ^'Hong Kong's hardcore gamblers'. CNNMoney. Retrieved 7 March 2018.
- ^Mok, Danny (1 September 2017). 'Hong Kong Jockey Club has record-breaking year'. South China Morning Post. Retrieved 7 March 2018.
- ^Hong Kong police smash illegal world cup betting ring. (2010, June 13). Asia Pacific News, Retrieved from http://www.channelnewsasia.com/stories/afp_asiapacific/view/1062884/1/.html
External links[edit]
- The Study on Hong Kong People's Participation in Gambling Activities, Hong Kong Polytechnic University, March 2012
- Tse, Samson; Yu, Alex C.H.; Rossen, Fiona; Wang, Chong-Wen (2010). 'Examination of Chinese Gambling Problems through a Socio-Historical-Cultural Perspective'. The Scientific World Journal. 10: 1694–1704. doi:10.1100/tsw.2010.167. ISSN1537-744X. OCLC48386834. PMC5763971. PMID20842314.
Tamil Nadu promulgates ordinance to ban online gaming
Following the footsteps of Telangana and Andhra Pradesh (refer to our Ergo), the state of Tamil Nadu has also amended its laws to restrict online gaming within its territory. The Honourable Governor of Tamil Nadu promulgated the Tamil Nadu Gaming and Police Laws (Amendment) Ordinance 2020 on 20 November 2020 (Ref: Tamil Nadu Ordinance Number 11 of 2020) (Ordinance). The Ordinance amends the Tamil Nadu Gaming Act, 1930 (TN Gaming Act) and extends its territorial scope to cover the entire state of Tamil Nadu. Gaming related provisions of the Chennai City Police Act, 1888 and the Tamil Nadu District Police Act, 1859 are no more applicable in the State of Tamil Nadu.
The Ordinance comes in the wake of the observations of the Madras High Court regarding the addictive nature of online games and its negative effect on the masses. In D Siluvai Venance v State (Ref: Madras High Court - Crl O.P. (MD) No. 6568 of 2020), the Madras High Court sought to address the negative effect of online gaming by resolving the regulatory void in the online and virtual gaming space (refer to our Ergo). Similarly, in Mohammed Rizvi v Union of India (Ref: Madras High Court - W.P. (MD) No. 15231 of 2020), it has been brought to the notice of the Madras High Court that members of the public end up incurring debts in connection with online gambling activities and that there are instances of people dying by suicide when unable to repay these debts. Given the number of deaths, the court indicated that the state government takes appropriate, adequate, and immediate measures, including bringing legislation, to prohibit or regulate online gambling. The Ordinance, as mentioned in its explanatory statement, is also promulgated in this backdrop.
The Ordinance has made the following key changes to the TN Gaming Act:
- Before the Ordinance, the TN Gaming Act prohibited any person from opening, keeping or using or allowing to use a 'common gaming house' (which covered physical premises like a house, tent, enclosures, rooms, vehicles, vessels, etc), where 'instruments of gaming' are kept or used. Pursuant to the Ordinance, a 'cyber-cafe' is now specifically included within the scope of a common gaming house;
- Instruments of gaming earlier only included any articles used or intended to be used as a subject or means of gaming. The definition has now been expanded to specifically include items such as cards, dice, gaming table or cloth, board, computers, computer system, computer network, computer resource, any communication device, or any other article used or intended to be used as a subject or means of gaming. It also includes electronic records that are used as registers or records or evidence of any gaming. Further, instruments of gaming include proceeds of any 'gaming', including any online transfer of funds or transactions;
- The definition of gaming has been expanded to include wagering and betting in cyberspace;
- A new provision has been introduced to address offences by companies. In case of offences by companies, the company, and any persons responsible for the conduct of the business of the company will be deemed to be guilty and liable for punishment unless such person can prove that the contravention took place without his / her knowledge and that they exercised all due diligence to prevent such contravention. Further, if an offence is committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect of any director, manager, secretary or any other officer of the company, such director, manager, secretary or any other officer will be deemed guilty of that offence;
- Penalties for contravention have been increased. Anyone found guilty of operating a common gaming house could be liable for up to 2 (Two) years imprisonment and / or a fine of up to INR 10,000 (Indian Rupees Ten thousand). Further, anyone found guilty of gaming in a common gaming house could be liable for up to 6 (Six) months imprisonment and / or a fine of up to INR 5,000 (Indian Rupees Five Thousand); and
- The Ordinance introduces a new offence of wagering and betting in cyberspace. Under this provision, if any person is found guilty of wagering or betting in cyberspace using computers, computer system, computer network, computer resource, any communication device or any other instrument of gaming, by playing 'rummy', 'poker' or 'any other game', then such person will be liable for up to 2 (Two) years imprisonment and / or fine of up to INR 10,000 (Indian Rupees Ten thousand). Also, for this purpose, wagering or betting is deemed to include collection or soliciting of bets, and the receipt or distribution of winnings or prizes, including through electronic transfer of funds.
However, interestingly, the exemption of 'games of mere skill' has been retained in the TN Gaming Act. In fact, this exemption has been extended to the aforesaid prohibition on wagering or betting in cyberspace using computers, computer systems, computer networks, computer resources, any communication device, or any other instrument of gaming, by playing 'rummy', 'poker', or 'any other game'.
Unlike in the case of Telangana and Andhra Pradesh, the Ordinance does not put a blanket ban on offering online games. Online games involving skill continue to be exempted from the application of the restrictions under the TN Gaming Act.
Having said that, while the Ordinance seeks to prohibit online real money games such as rummy and poker, the prohibition does not apply to games of mere skill. Rummy and poker are permitted games under the prevailing legal framework. The Honourable Supreme Court of India has held in State of Andhra Pradesh v K Satyanarayana (Ref: 1968 AIR 825) that rummy is a game of skill. Similarly, poker is permitted in West Bengal, Sikkim, Nagaland, Goa, and Daman and Diu (by legislation) and Karnataka (by judicial precedent). This results in further confusion in an industry already marred by legal multiplicity, confusions, and uncertainties. We hope that this confusion will be cleared by the Tamil Nadu Legislative Assembly once it is in session and online games involving skill will be permitted. The Assembly is required to approve the Ordinance, with or without changes, within six weeks of reassembling pursuant to Article 213 of the Constitution of India, failing which the Ordinance will cease to be in force.
ASCI introduces guidelines to make real money gaming advertising safer and more responsible
One of the frequent complaints against real money gaming (RMG) activities is the way they are advertised to the common public. The advertisements occasionally create a perception that such games may become a source of income, livelihood, or profits as opposed to being a source of entertainment. This creates behavioural issues among the users of online gaming portals. Against this backdrop, the Advertising and Standards Council of India (ASCI) has on 24 November 2020 published guidelines around advertisements pertaining to RMG. These guidelines will be effective from 15 December 2020.
ASCI is a voluntary self-regulation organisation established in 1985. It provides self-regulation in advertising to protect the interest of consumers and ensure that advertisements are legal, decent, honest, truthful, and not hazardous or harmful. It is important to note that ASCI is not a government, quasi-government, or a regulatory body. Its members are usually bound by its rulings and while these are not strictly enforceable, the members are contractually bound. ASCI's guidelines are also incorporated by reference, among others, in the Cable Television Networks Rules, 1994.
The following guidelines have been provided to ensure safe and responsible advertising regarding RMG:
- Advertisements must neither depict nor suggest that persons less than 18 years of age can play or plays online RMG;
- All online RMG advertisements in print / static form must carry a disclaimer reading 'The game involves an element of financial risk and may be addictive. Please play responsibly and at your own risk'. Such disclaimer should (a) occupy at least 20 % space in the advertisement, (b) be in the same language as the advertisement, (c) be in the same font as the advertisement or in sans serif (not in italics), (d) be along the natural reading direction of the advertisement, and (e) be in contrast with the background, etc;
- All online RMG advertisements in audio / video form must carry a disclaimer at a normal speaking pace at the end of the advertisement stating that 'the game involves an element of financial risk and may be addictive. Please play responsibly and at your own risk'. Further, it must be in the same language as the advertisement;
- For an audio-visual medium, the disclaimer must be in both formats and comply with the guidelines;
- The advertisement must not represent online RMG as an income opportunity or an alternative employment option; and
- The advertisement must not suggest that an individual involved in online RMG is more successful as compared to other people.
The risk of irresponsible behaviour by users of RMG portals is real. The industry suffers from the perception of harbingering irresponsible behaviour and being a social evil. The introduction of guidelines by a self-regulatory body such as ASCI to make advertising of online RMG safe and responsible is a crucial first step towards a responsible gaming culture.
The content of this document do not necessarily reflect the views/position of Khaitan & Co but remain solely those of the author(s). For any further queries or follow up please contact Khaitan & Co at legalalerts@khaitanco.com
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