After the recommendations in the report given by R M Lodha Panel nearly a year ago on legalizing betting with an in-built mechanism and along with few key recommendations. The apex Court had then observed, “the recommendation made by the Committee that betting should be legalized by law, involves the enactment of a Law which is a matter that may be examined by the Law Commission and the Government for such action as it may consider necessary in the facts and circumstances of the case.â€
The Commission now wishes to examine the legality of both betting and gambling, in view of the fact that gambling is very closely associated with betting. It further acknowledges that online gambling and betting is another area which has become very difficult to curb.
Therefore, The Law Commission of India has invited views and suggestions from stakeholders and general public on the issue of legalizing betting and gambling.
The commission considering that though betting is illegal in India it is always been clandestinely practised all over the country and because its illegals the government loses on substantial revenue and a parallel chain of black money is created. In its official release, they state “The Commission has been mulling this idea for quite some time now. Discussions were initiated with some of the stakeholders and the Commission is working towards a possible report.
Will legalizing betting and gambling help in curbing the illegal activities undertaken by the citizens of our country in this regard? Will licensing such activities help the Government earn substantial revenue and generate employment? How far will legalizing betting and gambling be morally correct in the Indian circumstances? What could be a possible model by which the people engaging in such activities can be safeguarded against bankruptcy? If legalized, should foreign betting and gambling companies be allowed to have a foothold in the country? These are certain basic areas that need to be addressed, along with any other issues that may come up while considering the matterâ€
As per a recent report published by the Federation of Indian Chambers of Commerce and Industry (FICCI) the Centre could earn Rs 19,000 crore annually by imposing a 20 per cent tax on sports betting, particularly in cricket, after it is legalised. The Committee of GST has proposed 28 per cent tax on the gaming sector in its recommendations submitted to the Centre.
According to the estimates of the intelligence agencies in India, the Indian betting market is worth an enormous Rs 3,00,000 crore. Intelligence agencies as well as the enforcement directorate have been time and again reiterating that the money involved in betting has been routed through the hawala and money laundering process from India through foreign countries and that the Mafia was behind the betting racket. According to the legal experts, legalising betting would bring in more competition and transparency into the secret world of bookies, which could curtail illegal betting.