Gambling and sports betting could become legal in India if Law Minister Ravi Shankar Prasad agrees with a report issued by the Law Commission that urges the legalization of wagering in the country. The commission’s report—“Legal Framework: Gambling and Sports Betting including Cricket in India”—recommends that the government regulate all wagering activities in the country.
The rationale for the legalization is the same as the one used in the United States recently in overturning the Professional and Amateur Sports Protection Act—the total ban on betting has spurred massive black market activity.
“In the light of the fact that the existing black-market operations relating to these activities are a major source of influx of black money in the economy, regulation rather than complete prohibition the logical step to be taken,” the report read.
Written by a group of legal experts that included several senior judges, they concluded, “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.”
Match-fixing in the sport of cricket has been rampant in India and the report doesn’t suggest relaxing penalties regarding that activity.
“Match-fixing and sports fraud should be specifically made criminal offences with severe punishments.”
The report points out that the country could benefit from substantial tax revenue from gambling and sports betting, but says each Indian state would decide whether or not to legalize betting.
And there must be real regulations in place, wrote the authors.
“Gambling and betting, if any, should be offered only by Indian licensed operators possessing valid licences granted by the game licensing authority. For participants, there must be a cap on the number of transactions an individual can indulge in these activities in a specific period, i.e., monthly, half-yearly or yearly.”
On the other hand, the report suggests that foreign investments in any casino or sports betting industries should be encouraged.
“Allowing foreign direct investment in this industry would bring substantial amounts of investment to those states that decide to permit casinos, propelling the growth of the tourism and hospitality industries, while also enabling such states to generate higher revenue and employment opportunities.”
Meanwhile in Goa, which along with Sikkim are the only two Indian states that currently allow some form of gaming, has reversed a decision that could have had a substantial negative impact on the floating casinos there.
Goa Chief Minister Manohar Parrikar late last year declared his intention to amend the state’s gambling laws to freeze the number of licenses that currently exist and to clamp down with better controls over the existing casinos.
But last week Parrikar said that the current laws and regulations are actually sufficient and he wouldn’t ask for any changes. The government is still considering relocation the floating casinos to a land-based gaming zone in the northern part of the state.
