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