NEW DELHI: The Law Commission of India, in its 276th report to the Central government, has recommended legalisation of regulated betting and gambling activities, asserting that the current measures undertaken by the Board of Control for Cricket in India (BCCI) are ‘ineffective and insufficient’.
Titled as ‘Legal Framework: Gambling and Sports Betting Including in Cricket in India’, the report stated: “Incapability to enforce a complete ban has resulted in a rampant increase in illegal gambling, resulting in a boom in black-money generation and circulation. Since it is not possible to prevent these activities completely, effectively regulating them remains the only viable option.”
It added that such regulation of gambling would require a ‘three-pronged strategy’, which includes ‘reforming the existing gambling (lottery, horse racing) market, regulating illegal gambling and introducing stringent and overarching regulations’.
The Law Commission has also recommended classifying gambling into two categories, namely ‘proper gambling’ and ‘small gambling’.
“Proper gambling would be characterised by higher stakes. Accordingly, only individuals belonging to the higher income group shall be permitted to indulge in this form of gambling. On the other hand, individuals belonging to the lower income groups will have to confine themselves to ‘small gambling’, not being permitted to stake high amounts (falling within the bracket of ‘proper gambling’),” the report stated.
The report has been published two years after the Law Commission was tasked by the Supreme Court with examining the best way to deal with the country’s rampant gambling activity, nearly all of which remained underground and untaxed. India’s archaic gambling laws date back to 1867, when the country was still an English colony
It has also recommended linking the Aadhaar or PAN card of those involved in betting and gambling to regulate illegal activities such as money laundering.
“Gambling transactions should be made cashless, making use of electronic means of payment such as credit cards, debit cards, net-banking, Virtual Currencies (VC also known as Cryptocurrency), etc. Stringent laws should be put in place to control Foreign Direct Investment and at the same time, to prevent money laundering, while also implementing necessary tax reforms,” the Law Commission explained.
The Law Commission further recommends that upper limits for gambling deposits, winnings and losses be mandatory. There would also be limits on the number of allowable gambling transactions during specific periods, i.e. monthly or yearly, that would depend on an individual’s personal financial circumstances.
The Law Commission also recommends that only “Indian-licensed operators from India” be permitted to offer legal gambling, although it also claims that laws should be amended to “encourage Foreign Direct Investment in the casino/online gaming industry, lawfully permitting technological collaborations, licensing and brand sharing agreements, etc.”
Indian-licensed online gambling websites would be required to prominently display responsible gambling information and to ensure that no “objectionable or pornographic content” is displayed on their portals.
The report notes that information technology laws may need to be amended to ensure that technical intermediaries aren’t prosecuted for transmitting or hosting content related to legal gambling.
The report stressed the significant contributions that legal gambling could make toward governmental tax coffers, and recommended that this windfall be used to fund public welfare initiatives. Authorizing land-based casinos would also lead to a surge in local employment and growth in tourism.
The panel further stated that Parliament may enact a model law for regulating gambling that may be adopted by the states or in the alternative, Parliament may legislate in exercise of its powers under Articles 249 or 252 of the Constitution.
