India: law commission suggests gambling legalization

The panel recommended that Parliament may enact a model law for regulating gambling that may be adopted by the states or in the alternative, the Parliament may legislate in exercise of its powers under Articles 249 or 252 of the Constitution, the Indian Times reports.

In case legislation is made under Article 252, states other than the consenting states will be free to adopt the same. Being a state subject under List II of the Seventh Schedule to the Constitution, it is needless to say that State Legislature(s) is competent to enact the required Law for the State(s) concerned, while duly taking note of the National Policy on gambling etc., and 

The pannel seeks stringent control and to make the entire operation a cashless transaction with mandatory application of PAN (Permanent Account Number) and Aadhaar to curb any chances of money laundering.

In its report - Legal framework: Gambling and sports betting including in cricket in India - the law panel has said that incapability to enforce a complete ban has resulted in rampant increase in illegal gambling, resulting in a boom in black money generation and circulation. "Since it is not possible to prevent these activities completely, effectively regulating them remains the only viable option," it noted.

Citing examples of legal betting and gambling in other countries such as in China where the state lotteries sales recorded a $51 billion high in 2013, the commission said that the additional revenue thus generated through imposition of Income Tax and the Goods and Services Tax may become a good source of revenue, which in turn, could be used for public welfare.

The Commission has also recommended gambling and betting to be offered only by Indian licensed operators from India possessing valid licences granted by the game licensing authority. It has also said that for participants, there must be a cap on the number of transactions in a specific period, ie, monthly, half-yearly or yearly.