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Report No. 276


The Advocates were in favour for legalising of betting and gambling.

  • If gambling and betting gets legalised, India will collect tax revenue which can be used for development of India and then tax load on every individual will definitely decrease.
  • This will lead to an increase in employment and disabled individual will get a chance to earn a living.
  • India's Gross Domestic Product (GDP) will increase when hotels and restaurants will come into existence and with increase of tourism.
  • Legalising betting and gambling will help the Government to keep the underworld activities under check.
  • If the sports betting get regulated then there will be accountability for large amount of money transferred through illegal channels leading to a reduction in cases of match-fixing, money laundering and corruption.
  • The need of the hour is to come up with an active regulatory framework, whether the principle philosophy is to permit or restrict betting, but not compulsory banning it.
  • At present each state has power to legislate betting and gambling. The advocates have suggested that the Central Government must enact a Primary Legislation which would clearly define what constitute gambling, lotteries, sports betting and casual betting.

➢ Set the procedure for procuring license and should be granted for limited period and that can be renewed.

➢ Stringent reporting obligations will need to be put in place, which may include annual and monthly reports to be filed with a regulatory authority constituted specifically to govern the betting and gambling.

➢ Should also mention the penalty and punishment provision in case any fraud happens.

➢ It may prescribe limits on the amounts that may be involved in each transaction.

  • Separate regulatory authority should be constituted who would issue license, review reports, issue dire ctions, conduct inspections and prescribe various security measures.
  • Most of such activities like gambling etc. are done through illegal sources and having strict Know Your Customer/Client (KYC) norms would help regulate the economy and help the government fighting corruption. Also, such KYC could prevent illegal activities like match-fixing etc.
  • The law permitting gambling should mandate that only those persons who have attained majority under the Indian Majority Act, 1875 should be allowed to play games for stakes in casinos and to open an account on online gambling websites.
  • The law regulating the payment systems, particularly in terms of mobile and internet wallets need to be amended to allow payment system providers to facilitate the use of such payment systems for gambling, the operators of such payment systems would need to ensure that a KYC check is completed before allowing individuals, to use their instruments to place bets.
  • Responsibility of the Government while providing guidelines to also ensure that such online sites do not present any objectionable and pornographic content.
  • Compulsory Corporate Social Responsibility (CSR) mandate and entity should pay certain percentage of its gross revenue to an NGO.
  • That 'line-in-betting' should be made illegal. That is betting on a certain event should be closed at least one hour prior to the start of an event. This policy is similar to that followed in horse riding in India, wherein betting take place prior to the beginning of the race.
  • Any person wishing to undertake betting and gambling activities must provide his/her PAN and Aadhar Card details. This shall not only allow the Regulator to monitor the earning of the person but shall also allow the betting and gambling operator to detect any signs of addictive behavior on part of the individual.

Legal Framework - Gambling and Sports betting including Cricket in India Back

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