Law Commission of India recommends legalisation of regulated betting

The Law Commission of India released its 276th report on July 5, 2018, recommending that betting and gambling in sports be legalised and regulated.

The move comes after the Supreme Court's observed in Board of Control for Cricket in India v Cricket Association of Bihar and Others that,"...the recommendation made by the committee that betting should be legalised by law, involves the enactment of a Law which is a matter that may be examined by Law Commission and the Government for such action as it may consider necessary in the facts and circumstances of the case."

In May 2017, the Law Commission had issued a public notice asking the general public, and any stakeholders that may be affected, to send in their suggestions and opinions about whether betting and gambling should be legalised, stating that, "Strict rules against betting and gambling have not necessarily acted as a deterrent." The notice also acknowledged the rise of online gambling and betting, admitting that it "is another area which has become very difficult to curb."

Continuing with the same tone as the notice from last year, the Law Commission's report states that legalising gambling and betting would allow the Government to generate a good source of tax revenue. The report points out that the Government can enact a model law for regulation of gambling in exercise of its powers under Article 249 or 252 of the Constitution.

Further, the report recommends that Aadhar should be used to identify betting service providers and license-holders, as well as people placing bets. People who are below the poverty line, those below the age of 18 years, as well as those who receive Government subsidies should not be allowed to partake in betting. In order to address the issue that actually raised this matter,the Commission suggests that betting and match-fixing should be made criminal offences.

The report also raises the issue of Foreign Direct Investment (FDI) and suggests that Foreign Exchange Management Act,1999 and the FDI policy be amended to encourage Foreign Direct Investment in casino and online gaming industry.