On July 6, 2018, the Law Commission submitted its report, titled ‘Legal Framework: Gambling and Sports Betting including Cricket in India’. The Commission recommends legalising betting and gambling in India. It suggests various ways to regulate the betting market. As per the report, there should be stringent control and the process should be made a cashless transaction. Also linking Aadhaar/PAN card to betting for both operators and participants to curb the chances of money laundering should be made compulsory. In this regard, it also makes a distinction between ‘proper betting’ for higher stakes and ‘small gambling’ for people with low income. The report recommends that minors and people below the poverty line, those who get subsidies or do not fall within the purview of the income tax or the GST Act, should be prohibited from participating in betting or gambling to protect them from this menace.
As per the report, since it is impossible to prevent betting and gambling completely, the best option is to regulate them. This way additional revenue would be generated through imposition of income tax and the goods and service tax.
The panel also recommended that Parliament may enact a model law for regulating gambling to be adopted by states.
Under Articles 249 or 252 of the Constitution, Parliament can also legislate in exercise of its powers. Another suggestion is that only licensed operators from India possessing valid licences granted by the game licensing authority offer gambling and betting. The number of transactions should be limited in a particular period—monthly, half-yearly or yearly.