Legalising Gambling

The Law Commission of India on July 5, 2018 recommended that the government turn match fixing and sports fraud into criminal offences while allowing gambling and cricket-related betting as a regulated activity under the direct and indirect tax regimes. The legal body said it decided to go beyond the apex court’s reference as betting and gambling are “intertwined”.

JUSTIFICATION 

• As it was not possible to completely prevent these activities, “effective regulation” seemed to be the only viable option allowing gambling and cricket-related betting as a regulated activity under the direct and indirect tax regimes. The Commission pitched for stronger laws to curb match fixing and incidents of cheating.
• Regulating these activities would “strike at the underworld’s control over the illegal and unregulated gambling industry”.
• The commission recommended that various “skill-centric games” be exempted from anti-gambling laws on the lines of horse racing.
• The Law Commission says gambling and betting should be made taxable under the direct and indirect tax regimes and could be used to attract foreign direct investment. Allowing FDI would bring substantial amounts of investment to states that decide to permit casinos, propelling the growth of tourism and hospitality industries and will also help generate jobs and higher revenues.
• The commission has also recommended linking the Aadhaar or PAN card of individuals involved in betting and gambling, besides making the transactions cashless, to regulate illegal activities such as money laundering.
• Commission recommended that gambling be classified on the basis of the stakes involved, with the government regulator deciding how much money people from “lower-income groups” can put on stake. High stakes should only be allowed for people who can afford it. For participants, there must be a cap on the number of transactions an individual can indulge in these activities in a specific period.
• The panel said that those who are underage, receive government subsidies or do not fall within the purview of the Income Tax Act or the GST Act should be debarred from participating in gambling platforms.
• FICCI estimated in 2013, 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.

FAILURES LEGALISED

• Liquor prohibition
• Gold smuggling
• Foreign exchange 
• VDS - regularization of black money
• Unauthorized constructions in cities
• Public sector bank loan write offs
• Several corrupt practices
  .... and many more 
• Now it is Gambling. Next it will be Prostitution. Where are we heading for?

One of the characteristics of governments in India is to copy western laws, make them unreasonably stricter, fail to enforce them leading to more corruption and then liberalize it in the name of reforms, citing additional government revenues and new jobs. This rewards law violators and punishes law abiding citizens. We have hundreds of Acts which are not being implemented. Reforms are usually a ‘redecoration of the walls of the same prison.’ A well educated and affluent society with strong ethical foundation doesn't require stringent governmental regulations for social well being. India saddled with illiterate and poor people, need not compete with developed countries in this regard.