(Image source from: Live Law)

The Law Commission of India on Thursday released its 276th report recommending that betting and gambling in sports be legalized and regulated.

The decision comes after the Supreme Court ascertained 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 legalized 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 direct in their ideas and persuasion regarding whether betting and gambling should be legalized, 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."

Proceeding with the aforesaid tone as the notice from earlier this year, the Law Commission's report states that legalizing 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 the regulation of gambling in the exercise of its powers under Article 249 or 252 of the Constitution.

Further, the report recommends that Aadhaar should be in use to determine betting service providers and license-holders, likewise people placing bets. Groups 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 in reality raised this matter, the Commission suggests that betting and match-fixing should be made felonious offenses.

The report besides 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 the casino and online gaming industry.

By Sowmya Sangam