Table of Contents
WHAT JUST HAPPENED?
The Law Commission of India has submitted a report to the government, saying that since it is impossible to stop illegal gambling, the only viable option left is to regulate gambling in
sports.
Law Commission of India is an executive body established by an order of the Government of India. Its major function is to work for legal reform. Chairman – Justice B. S. Chauhan (21st Law Commission)
NOTES
•The Law Commission of India, in its 276th report, has recommended legalisation of regulated betting and gambling activities, while asserting that a complete ban has not been returning the desired results.
A regulated market for sports bets should help curb the illegal betting racket, which has in the past led to match-fixing and spot-fixing allegations, especially in cricket. When betting is
regularised, more institutional mechanisms will come in place and check fixing in sports.
An estimate by the Doha-based International Centre for Sports Security pegged the illegal betting market in India at about Rs 9.9 lakh crore annually. The Federation of India
Chambers of Commerce and Industry (FICCI) puts government revenue from legal betting at about Rs 19,000 crore.
AT PRESENT
•At present, legal betting is permitted only in horse racing, which is taxed at 28 percent. The government also makes money from the sale of lottery tickets in a
few states.
•In Mizoram, the revenue from the sale of lottery in 2014-15 was almost Rs 12 crore. Kerala collected Rs 908 crore as GST and Rs 1,690 crore as state revenue from lottery sales the previous fiscal
KEY RECOMMENDATIONS OF THE
COMMISSION
• The commission made a distinction between ‘proper gambling for higher stakes and ‘small gambling’ for people with low income.
• It also said that gambling and betting, if any, should be offered only by Indian licensed operators from India possessing valid licences granted by the game licensing authority.
• As for the participants, the commission recommended that there must be a cap on the number of transactions an individual can indulge in these activities in a specific period.
KEY RECOMMENDATIONS OF THE
COMMISSION
• It also said that the nature of stakes should be restricted to money with a linkage to PAN card and Aadhaar card, and the betting amount should be prescribed by law, having an upper
limit on the amount one can legally stake in a gamble, which may be on the basis of the deposit, winnings or losses.
• It suggested linkage of Aadhaar/PAN card to betting for both operators and participants and cash-less digital transactions to help monitor cash flow.
NOTES
It also recommended that 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 laws for the time being in force applicable to such activities in India.
KEY SUGGESTIONS
• Parliament may also enact a model law for regulating gambling that may be adopted by the states
• In the alternative, Parliament may legislate in the exercise of its powers under Articles 249 or 252 of the Constitution
• In case legislation is made under Article 252, states other than the consenting states will be free to adopt the same
GAMBLING IN INDIA
•Casinos now operate in Goa, Daman and Sikkim
• According to the Goa, Daman and Diu Public Gambling Act, 1976 casinos can be set up only at
five star hotels or offshore vessels with the prior permission of the government.
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