Law Commission on Legalising Gambling

Why in news?

Law Commission of India has recommended the government to allow gambling in sports.

What are the recommendations?

The Law Commission has observed that it is impossible to stop illegal gambling.
Hence, the only viable option left is to allow gambling in sports and to “regulate” it.
It recommended “cashless” gambling in sports.
Linkage - The revenue from gambling should be taxable, which can be used for public welfare measures.

Transactions between gamblers and operators should be linked to their Aadhaar and PAN cards.
This will provide for the government to follow and regulate them.
Classification - Gambling would be classified as ‘proper gambling’ and ‘small gambling’.
Proper gambling would be for the rich who play for high stakes.
On the other hand, small gambling would be for the low-income groups.
Restrictions - The number of gambling transactions by each individual should be capped on a monthly, half-yearly and annual basis.
Restrictions on amount should also be prescribed while using electronic money facilities.
Protection - Regulations should be made to protect vulnerable groups like BPL families and minors.
It should include those receiving social welfare entitlements, government subsidies and Jan Dhan account holders.
Legal - Foreign Exchange Management and FDI laws and policies should be amended.
This is to encourage investment in the casino/online gaming industry.
This would boost tourism as well as employment.

What are the concerns?

The SC in 2016 had asked the commission to look into legalising betting in cricket.
It came as part of the judgment in the BCCI case involving illegal betting in IPL cricket matches.
Clearly, Supreme Court's reference did not specify sports as a whole.
Given this, the commission is said to have exceeded the brief given to it.
There are also opinions that a country as poor as India should not allow ‘legalised gambling’.
It could leave the poor poorer and promote vested interests.

Source: The Hindu