Indian Law Commission recommends legalisation of gambling and sports betting
Current legislation ‘incapable’ of preventing illegal gambling, according to a new report
The Indian Law Commission has published a 145-page report in which it calls for the regulation of online gambling and betting in India.
The commission’s report looks at the current state of the Indian gambling industry, legal definitions applied at state and federal level and examines the development of regulated markets in jurisdictions such as the UK and US.
In its report, the commission said a properly regulated industry would ensure transparency in the market, help fight problem gambling and clamp down on illegal gambling, much of which is run by India’s criminal underworld. In addition the tax revenues could be used for public welfare.
It specifies that only individuals who are aged 18 years and above should be allowed to gamble, recommending that all gambling transactions should be linked to the player’s income tax card.
Opinions were submitted to the commission by the public, local organisations and several international operators and associations, including the Remote Gambling Association, BetGenius, Greentube Malta and sports betting integrity body ESSA.
No explicit provision for online gambling exists within the Indian constitution, with the decision being left up to individual states. At present only two of India’s states, Sikkim and Nagaland have chosen to enact online gambling legislation.
The commission report called for a “much-needed change in approach”.
“With the changing times, there could always be an option to have a relook at the earlier approach of a complete ban. The relook, if any, may consider the possible loss of revenue and employment generation that a regulation could bring about.”
“The 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.”
The commission recommends a three-pronged approach encompassing: the reform of the existing gambling market, the regulation of illegal gambling and the introduction of what it calls “stringent and overarching” regulations.
In what will be a boon to international operators, the commission says existing policy should be amended to encourage direct investment by foreign companies in the online gambling industry.
Clive Hawkswood, chair of the Remote Gambling Association welcomed the Indian Law commission’s report but questioned the work that still needs to be done: “India is potentially a huge market with an established passion for sports betting so very much a market of interest to many of our members,” Hawkswood said.
“The direction of travel there is encouraging given the stance taken by the Commission but we are mindful that more still needs to be done before a viable regime is in place which will deliver a well-regulated and sensibly taxed market.”
Stride Gaming, who operate the Rummy Passion in the Indian market called the development “a very positive move with significant potential.”
Stride director of strategy & corporate development Elliot Berg added: “We entered the Indian market last year through our investment in Passion Gaming, and as a result will be in a very strong position to exploit potential growth opportunities should regulation open up.
“We’d like to see regulation not just in sports, but across multiple verticals. Only time will tell, but it’s certainly a move in the right direction and we’ll be monitoring developments closely.”