Should Gambling and Betting be Legalized in India?

The Law Commission of India on July 5th released its 276th Report on Legal Framework: Gambling and Sports Betting Including in Cricket in India. The Report was prepared by the Law Commission in pursuance of Supreme Court’s order in the case of Board of Control for Cricket in India v. Cricket Association of Bihar & ors.[1], wherein the Apex Court had asked the Law Commission to study possibility of legalizing betting in India.

The Commission in its report has inter alia made the following recommendations:

Gambling and Sports Betting shall be properly regulated would ensure transparency in the market, as also strike at the underworld’s control over the illegal and unregulated gambling industry. Additionally, the revenue so generated by regulating and taxing betting and gambling, may become a good source of revenue, which in turn, could be used for public welfare.

That legalising betting and gambling is not desirable in India in the present scenario. Therefore, the State authorities must ensure enforcement of a complete ban on unlawful betting and gambling. However, incapability to enforce a complete ban has resulted in 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.

Gambling and betting, if any, should be offered only by Indian licensed operators from India possessing valid licences granted by the game licensing authority.

All betting and gambling transactions should be linked to the operator’s as well as the participant’s/player’s Aadhaar Card/PAN Card.

The websites advertising gambling must compulsorily ensure that there is no objectionable or pornographic content on display on their portals/platforms.

Any income derived from such activities should be made taxable under the Income Tax Act, 1961, the Goods and Services Tax Act, 2017 and all other relevant 119 laws for the time being in force applicable to such activities in India.

That the Intermediary Guidelines Rules be suitably amended to insert the word ‘illegal’ before the word ‘gambling’ so that those intermediaries that transmit or host content relating to illegal gambling, i.e., gambling activities not licensed by any State, may be held liable.

Match-fixing and sports fraud should be specifically made criminal offences with severe punishments.