Gambling Should Be Legalised In India
Should gambling be legalised?
From the time of Mahabharata to this very day, gambling has been a prevalent practice in Indian society. Gambling was heavily restricted in India by law in the British Era with The Public Gambling Act, 1867.
While the British themselves have now legalized gambling, India remains one of the countries where gambling, though widespread, has neither been able to regulate it or benefit from it.
- Should Gambling Be Legalized in India? Sanju George, Richard Velleman, and Benedict Weobong Indian Journal of Psychological Medicine 0 10.11620928761.
- India’s Law Commission has submitted a recommendation to government that sports betting and gambling be legalized and regulated.
Hence, the law commission had been asked by the Supreme Court to see if gambling could be legalized in India or not. The Law Commission of India submitted a report in 2018 to the then Law Minister Ravi Shankar Prasad stating that a complete ban on gambling is not working and it is time India overturns outdated laws.
Should gambling be legalised? From the time of Mahabharata to this very day, gambling has been a prevalent practice in Indian society. Gambling was heavily restricted in India by law in the British Era with The Public Gambling Act, 1867. Now, if we assume that gambling in India would be of a proportionate scale if it were legalized (that is, 1% of GDP), that would imply revenues of the order of Rs 62,000 crore.
Around the World
All countries in the world fall into one of three categories, a) Where gambling is legal and regulated, b) Where only online casinos are banned, and some other restrictions are put in place c) Where gambling is illegal. Of course, it is more complicated than that, but this is the broad classification.
Most developed countries fall in the first category. UK, Spain, Greece, and Canada – all collect taxes on gambling. The USA has somewhat liberal gambling laws. Betting on cricket is legal in South Africa. Norway considers it legitimate if done through registered companies.
UAE, North Korea, Japan, and Singapore are some countries where gambling is illegal. India needs to weigh the positives and negatives and come up with a unique gambling law policy which regulates the current system in a way that it does not incentivizes the gambling industry or encourage more people into gambling.
Advantages of Legalizing Gambling
1. Regulation
It has been observed by the Law Committee as well that authorities are not able to stop gambling, and it is happening at a massive range. What cannot be prevented must be regulated and restricted. Gambling, today, occurs with an influence from the underworld and huge black money flows in and out of the system due to this.
Online Gambling has also found multiple users and is flourishing without any regulations. The only way to control and handle this at large is first to recognize that the issue exists instead of denying it. Then, rules can be imposed at various levels, making it not only safer for the people who indulge in gambling but also creating mechanisms to keep crime away from speculating.
2. Revenue
The Gambling Industry today is expected to be worth somewhere around at least $60 billion while reports are suggesting it could be more. Legalizing it would curtail black money and also bring in a source of revenue. Even a conservative estimate indicates that the government can earn tens of thousands of crores in revenue by just legalizing what present and regulating it.
If casinos and online gambling are also included, this increases multifold. This revenue can be used for socially constructive schemes, like in the field of health and education. The simple fact here is that gambling exists. The government recognizing it can not only help in earning more revenue but also in curbing sources of black money and establishing accountability.
3. Economic Opportunities
Other than being a significant source of revenue, gambling can also open up India into a whole new range of economic opportunities. Employment is one such area. Gambling Industry in other countries proves that workers are well paid and with a market as vast as ours, we can generate jobs for a good number of people.
Today, gambling is legal in some parts of the country like Goa. This is also an indication that gambling is an added plus for tourists. When many countries in the developing and developed world are benefiting from the gambling market, there is no reason why India should be left behind. Around 2.5 lakhs and 1 lakh people are employed in the UK and USA in the gambling market respectively.
4. Prevention of nexus between Crime and Gambling
As gambling is illegal in India, the world of crime has completely undertaken its process and control. Gambling shops and casinos have been observed to be places where the drug market flourishes and the crime world operates. Legalizing gambling will help the government control these dangerous activities.
Further, as gambling is illegal, the entire market flourishes on black money which is directed to fund terrorism and other nefarious activities. It acts as a constant market for inflow and outflow of black money. The only way to control and prevent this is to regulate gambling and bring in strict and loophole less legislation to restrict such nexus.
5. Transparency and Safety
There have been multiple cases of people losing livelihood and committing suicide or loss of life due to unchecked gambling in the industry which the authorities have been forced to turn a blind eye too. Further, due to the crime world being so involved in the gambling industry, the safety of multiple individuals who indulge in it has been compromised.
Once legalized, campaigns on excessive gambling can be run, and people can be made aware of its disadvantages. Further, legalizing gambling can bring in transparency and accountability in the sector. Even though these may take time, recognizing and regulating gambling is the first step towards it. It will also prevent cheating and people falling prey to fake and non-authentic gambling houses.
6. Personal Freedom
At the end of the day, gambling does come down to own freedom. It is like eating a burger; it should be a choice for everyone. It should not be banned just because some people cannot control themselves and will excessively feed on junk food. With alcohol and smoking, which is left to personal choice but preventive measures, are taken.
The same should be followed by gambling. Humans are speculative by nature. By making gambling illegal, this natural urge exposes itself and pushes people to the world of crime and gambling when the opportunity arises, as they have no proper knowledge or precautions. Hence, it is better to leave it, people, to choose for themselves and for the state to act as a regulating and educating mechanism.
Concerns Regarding Legalizing Gambling
Gambling has often been accused of being an immoral influence in Indian society. A lot of people have indeed lost their hard-earned money in the intoxication to earn more money. It has definitely also been the cause of breaking families.
Gambling is often described as addictive. Further legalizing gambling is expected to make matters worse.
Many have commented that it will act as a free pass for match-fixers and hamper the integrity of players. Moreover, statistics from Italy shows that gambling has increased 24 times after relaxing regulations. This has led to many arguing that law is the deterrent for most people, and removing that will have disastrous results.
Legalizing gambling might encourage youth to waste precious years of their life in a world where returns are rare and limited. Gambling is often described as “a trap” which can lead successful people to bankruptcy.
Effects of legalizing gambling are expected to affect the lower class the most. They are more vulnerable and likely to be lured into the world of gambling.
Some even argue as to why India is so eager to follow the western world and why laws of the western countries are considered “progressive” when it clearly doesn’t suit Indian values and social structure.
Moreover, questions are raised as to how the already overburdened government and bureaucracy of the country will create and implement effective laws which do not incentivize gamblers and break the nexus between crime and gambling.
Measures India must look into
Creation of a regulatory framework to govern the gambling sector is essential. Gambling can be restricted to only licensed gambling houses and casinos, which will make it simpler to regulate it. Age restrictions can be imposed, and minors can be effectively prevented from entering the market. Limit on how much a person can wager can be created based on income level. PAN and Aadhaar can be linked to these transactions.
Cashless transactions can be encouraged, and limits can be set on a number of transactions to safeguard participants. Foreign Investments in this regard can be encouraged by amending India’s FDI policy. Information Technology act must be amended, and comprehensive laws on online betting can be made. The hardest part will be to find a way to ensure that the connection between the crime world and gambling is broken, and gambling is seen as a source of entertainment only. Awareness campaigns can educate people, students, excessive gamblers, etc. on the effects of gambling.
The current situation
In India, gambling has been prevalent in cockfighting, playing cards, animal street fights and has moved into betting on sports like cricket. Currently, gambling on skill-based activities like rummy or horseracing is legal. It is also legal in select places like Goa and Sikkim. The law commission has now recommended legalizing gambling all over the country. First of all, gambling is a state subject as of now.
The center cannot legislate on it. Therefore, either the Rajya Sabha must pass the bill to make it a concurrent subject or the constitution must be amended. The general perception of Indian society towards gambling may deter any political party in power from taking this step as no political party wants to lose its vote bank.
Gambling Should Be Legalised In India 2017
Further, there is a whole debate about whether India has the mechanism and infrastructure to not only make policies on this regard but also effectively regulate and restrict it. If the later is not done, the whole point of legalizing gambling will become useless.
Gambling and Sports Betting to be legalized in India: Law Commission Report
GAMBLING AND SPORTS
CURRENT SITUATION:
Gambling Should Be Legalised In India Today
- Gambling in our country is governed by the Public Gambling Act, 1867.
- The Public Gambling Act, 1867 was passed during British rule.
- This act makes gambling or betting activities, illegal in our country.
- There is huge, illegal, unregulated gambling market is prevailing in our Country.
- The illegal betting market in India is worth $150 billion (Rs 9.9 lakh crore) a year.
- Out of $150 billion around $200 million bet on every one-day international played by the Indian cricket team, this information is given by Doha-based International Centre for Sports Security, this organization promotes integrity and security in sports.
- In 2011, the International Cricket Council (ICC) also recommended the legal framework for cricket betting in our Country to clean up Cricket.
- Justice Lodha Committee also recommended that betting in cricket should be legalised, though match-fixing should be a crime.
- Horse Race betting in our country is legal and also comes under the Goods and Service Tax act. There is GST of 28% on Horse Race Betting.
- Countries like Australia, Canada, few states of USA, China etc. allow sports betting. Moreover, these countries use the revenue generated from betting in developing sports infrastructure and tourism. Countries like China and USA use such revenue in Elite sports.
276th Law Commission Report
- 276th Law Commission Report was formulated in furtherance of a Supreme Court, where Court had mandated the Law Commission to study the possibility of legalising betting in India.
- Committee said that a complete ban has not been returning the desired results and also with the advent of online gambling it has become extremely challenging to monitor or curb these activities and therefore it is recommended the legalisation of regulated betting and gambling activities.
- LCR recommended that by regulating and taxing betting and gambling the revenue generated can be good source of revenue. Also, it will curb underworld control on illegal betting and gambling.
- LCR also recommended that regulating of gambling and betting would enable the Government to effectively curb the menace off black-money generation through illegal gambling.
- LCR also said Parliament or State legislature if proceed in direction of regulating betting or gambling, then regulated gambling would ensure detection of fraud and money laundering, etc. Parliament or state legislature may exercise its power given under article 249 or 252.
- LCR also recommended that Other skill-centric should be exempted from the prohibition.
- LCR also recommended that Gambling and betting should be offered only through India licensed operator from India possessing valid licenses granted by the game licensing authority.
- LCR also recommended that Gambling to be categorized into Proper Gambling and Small Gambling.
- LCR also recommended that All transactions to be linked to Aadhaar Card/ PAN card.
- LCR also recommended that no pornographic content on websites advertising gambling.
- LCR also recommended that Transaction between operators and participants indulging in these activities should mandatorily be made ‘cashless’. This would enable appropriate authority to keep a close eye on every single transaction so made.
- LCR also recommended that Income derived to be taxable under Income Tax Act and Goods and Service Tax.
- LCR also recommended that there should be an encouragement of FDI in the gambling industry especially in the states decide to permit casinos, propelling the growth of the tourism an hospitality industries.
AMENDMENT TO BE REQUIRED IN VARIOUS ACTS FOR RECOMMENDATION SUGGESTED:
- Amendment in Indian Contract Act, 1872 to allow legal transaction with licensed gambling operators.
- Amendment in National Sports Development Code of India.
- Amendment in The Public Gambling Act, 1867.
CONSEQUENCES
- Legalisation will lead to amassing money illicitly bu a handful of game operators, thereby pushing the innocent masses to hands of poverty.
- Most of the people in our country consider Gambling and betting as immoral. But legalisation would lead to involving large masses of people into it.
- The future generation will be involved in unethical practices.
- Our country’s socio-economic and cultural circumstances are not developed to accept legalised gambling activities.
- It will be difficult to regulate gambling in such a big country. Already there is hue and cry related to women, child, poverty etc.
- People who do not have any awareness will also get involved in such practices leading to wrong path and poverty.
- More cases involving fraud etc. leading to over-burdening on Judiciary and Executive agencies.
Gambling Should Be Legalised In India Now
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