Entertainment, Sports & the Law: Internet Gambling impact

THE IMPACT OF INTERNET GAMBLING

"What is more legal is a game of Skill rather than of Chance"

         Entertainment has a wide definition. It is a form of activity that holds the attention and interest of an audience or gives pleasure and delight.[1] It can be an idea or a task, but is more likely to be one of the activities or events that has the capacity to provide amusement or enjoyment to an audience. Apart from stage plays, poetry, music, dancing and drama, Sports is one of such activities that attracts vast attention from people all over the world. Therefore, sports is a significant part of the entertainment industry.

Photo Caption: group of youths in Kampala watching betting odds in a betting house

As with most African nation, Uganda does not have the vast resources that can be used to improve the facilities in the country for sports but that has not dampened their passion for sports. Uganda has embraced a number of sports such as baseball, cricket, tennis, golf, swimming, cycling, and boxing.

When it comes to sheer popularity, football is the king in Uganda followed closely by rugby and basketball. Their national football team, nicknamed 'The Cranes’ have taken the Council for East and Central Africa Football Associations (CECAFA) Cup a staggering 13 times as of 2021. The CECAFA Cup is the oldest of all the football tournaments in the whole of Africa. Their national rugby team is also recognized as one of the strongest in the region and their national basketball team, nicknamed 'The Silverbacks' has made its debut in the FIBA Africa Championship in 2015[2].

 

According to a recent report, more than a quarter of the world’s adult population today is involved in sports. Even in the presence of geographical barriers and physical varying legal jurisdictions, social differences like language barrier, international sports competitions (e.g. Olympics, Fifa World cup, African cup of nations among others and the transnational sports events still remain attended to even amid the covid-19 times from 2020. Owing to the dominance of sports affiliations all over the world, it has become somewhat ‘a world language with many dialects.[3] Sports being a game of attention, it attract various players including the supporters who get involved variously and this has given rise to other sports (games) stemming from the sports itself. An example of them is internet gambling. Let’s view it on an International perspective.

 

Internet Gambling

A growing problem involving sports gambling is the Internet, which provides gamblers with the opportunity to place wagers on professional and college sporting events from the privacy of their homes in virtual anonymity. The Internet also makes betting on sports easier. Instead of going through a bookie, all a gambler needs to place a bet are a computer, Internet access, and a credit card. Many of these bets are placed with casinos in off-shore locations in other countries where betting is legal. However, in 2006 a major piece of legislation greatly affected Internet gambling in the United States. The Unlawful Internet Gambling Enforcement Act of 2006 was passed by Congress and signed by President George W. Bush; it prohibits gambling sites from receiving payments from U.S. financial institutions including credit card, check, or lending companies. The bill has caused major gaming sites to withdraw from the U.S online gambling market, including Partypoker.com.

The act defines a bet or wager as risking something of value on the outcome of a contest. Fantasy leagues are defined as legal, but they are subject to restrictions. Fantasy teams are not “based on the current membership of an actual team,” meaning that a fantasy team cannot be simply a current sports franchise with all of its actual players. Prizes for fantasy league winners must also be made in advance of the contest.

From a de jure (valid in law) perspective, such activity is clearly illegal and should be prosecuted in order to uphold respect for existing laws. From a de facto (a situation which is accepted for all practical purposes, but is not strictly legal or correct) perspective, there is far too much activity for authorities to police effectively, and the harm created by such activities is usually minimal or non existent. Most fantasy leagues require an entry fee totaling less than $10 per week, and most office pools, such as for the NCAA tournament or Kentucky Derby, require entry fees of $20 or less. While these activities seem to constitute gambling in the legal sense of the word, they do not appear to be much of a threat to either society at large or the integrity of sports. A criticism of gambling from a legal perspective is speculation that compulsive gamblers will commit illegal activity and mistreat their families because of their gambling debts. In Uganda for instance, we have seen reports of people killing one another when consumed by their “team spirit.” Recently, a local football player in Lamwo District, Northern Uganda, died after he was reportedly assaulted by his teammates[4]. Gambling has led to family breakdown arising from house-heads constantly reporting home with no food or fees for their family and children respectively because somehow, the anticipated “chance” turned upside down. Children too have betted their tuition expecting wins and are now seated at home. A few years ago, 5 suspects in Rukungiri district were picked after an alleged murder of 24-year-old Ronald Akandwanaho, over a Ugx. 1,500 bet in a gambling brawl[5]

A criticism of gambling from a sports perspective is the speculation that gambling will lead to the fixing of games. Neither of these concerns appears to be valid in the context of fantasy sports and office pools, due to the small per-person amounts that are wagered.

Furthermore, certain states — such as Indiana, Wisconsin, New Jersey, and New York — have laws which stipulate that gambling is legal if it involves a game of skill rather than of chance For example, it would be legal to create a prize money pool for a chess tournament in such states, but not legal to create a prize money pool for a bingo tournament. One could argue, in these states, that one’s ability to evaluate talent (players in fantasy leagues, teams or horses in office pools) is the material factor in the game, rather than luck. There is little case precedent in this area.

In Boardwalk Regency Corp. v. Attorney General of New Jersey[6], the court found that the material factor in the game of backgammon was a dice roll, not skill, and therefore gambling on backgammon was found to be illegal. Professional sports leagues, players associations, the NCAA, and television net- works have all benefited from the enthusiasm over fantasy leagues and office pools Because the Internet has spawned a boom in fantasy leagues, their legal future probably hinges on developments in Internet gambling law. Such laws will have less effect on office pools. While 22.9 million people participated worldwide in online office pools for the 2007 NCAA Division I-A men’s basketball tournament, according to the Bloomington Pantagraph, the vast majority of office pools are cash enterprises kept within one locale. The Pantagraph also estimated that an average of 13.5 minutes are spent each day by employees looking at their NCAA  tournament picks and that the 19-day tournament costs employers an estimated $1.2 billion per year. Yet with such a loss in productivity, only 6% of employers said they would not allow office pools in their companies. Consequently, office pools are prosecuted only sporadically by police.

In conclusion therefore, sporting activities are paramount for any country’s social and economic growth. where the performance of any games suggest it to be one of skill, then it is most likely yielding to one's welfare and a bit more moral therefore unlike games of chances which carry more economic and social risk. However, serious regulation of sporting activities is required to ensure harmony with a country’s economic, social and moral ends.


AHIMBISIBWE INNOCENT BENJAMIN
(Entertainment Lawyer)




[1] https://en.wikipedia.org/wiki/Entertainment accessed on 15th september 2022

[2] Lubogo Isaac Christopher _ the Law of Sports and Entertainment in Uganda- 1st Edn. 2021

[3] Matthew J. Mitten, “ ‘Sports Law’; implications for the development of international, comparative, And national law, And Global Dispute resolution, Research Paper No. 10-31, 2010, page 40.

[6]457 A.2d 847 (N.J. Super. Ct. Law Div. 1982),

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