The Law Commission of India has recommended the legalisation of gambling and sports betting in its report titled “Legal Framework: Gambling and Sports Betting including Cricket in India”. The commission chaired by Justice B S Chauhan states “Parliament may also enact a model law for regulating gambling that may be adopted by the states or in the alternative, Parliament may legislate in the exercise of its powers under Articles 249 or 252 of the Constitution. In case legislation is made under Article 252, states other than the consenting states will be free to adopt the same.” The Law Commission is an executive body established by the Indian government to work on legal reforms. The Commission is appointed for a fixed tenure and works as an advisory body to the Ministry of Law and Justice.
The report is in many ways a result of the Commission’s study, as asked for by the Supreme Court last year, into the Lodha committee’s recommendation for “betting to be legalized by law” in India and the “enactment” of a suitable law for the same. The report of the Lodha committee came after a match-fixing case which involved Indian bowler Sreesanth and some other players. Sreesanth was banned by the BCCI, but no legal action could be taken against him because there was no law for that category of ‘Match Fixing’ as a criminal offense. According to the report, there should be strict regulations such as linking Aadhar or PAN card of the people involved in betting and gambling, as well as cashless transactions to prevent illegal activities such as money laundering. This will help the government to generate tax revenues and curb black money transactions involved in betting.
As per the report “The Foreign Exchange Management Act, 1999 and the Rules…made thereunder as also the Foreign Direct Investment (FDI) Policy…may suitably be amended to encourage Foreign Direct Investment in the casino/online gaming industry, lawfully permitting technological collaborations, licensing and brand sharing agreements, etc.”
This will help the tourism and hospitality industry to grow and make casino businesses highly profitable. In a 2013 report, the Federation of Indian Chambers of Commerce and Industry (FICCI) estimated that the underground betting market in India is huge at Rs.3,00,000 crore. Gambling and betting are currently allowed with restrictions in Goa, Daman, and Sikkim.
The Law Commission advocated that match-fixing and sports fraud be deemed as criminal offenses and be dealt with severe punishments. Many countries like England, Australia, and Pakistan treat match-fixing as a criminal offense. In Pakistan, the trio of Salman Butt, Mohammad Asif and Mohammad Amir had to face prison sentences for their involvement in spot-fixing. The unregulated territory of match-fixing and betting was corroding the people’s trust in ‘fair competition’ in sports.
If the ministry accepts the report and passes a corresponding law on it, it will go down as one of the biggest reforms in the sports industry of India. Since independence, there have been no effective efforts by the government to regulate the sports and gambling industry in the country. If the government regulates the industry, it can ensure free and fair competition as well as earn massive tax revenues.