Legalising gambling can help generate revenue
Any move to deregulate, however, must protect the vulnerable sections of society
Since the enforcement agencies have been unable to curb the spread of illegal gambling in the country, the Law Commission of India has recommended that the government should consider legalising gambling and betting as a regulated activity. The commission’s report, submitted to the government last week, suggests changes in law to regulate gambling and betting. One of the recommendations says that in keeping with the changing times, the State should re-examine the ban on gambling . In the State of Bombay vs RMD Chamarbaugwalla case in 1957, the Supreme Court had observed that even Kautilya, celebrated for his strategical acumen, wasn’t averse to the State earning revenue from gambling. For the record, gambling is illegal in India. But large-scale illegal betting continues regardless, in the process, depriving the State of revenue-earning opportunities. A good option could be to legalise, regulate and tax the resultant income. This might help curb illegal syndicates. Regulation of the sector also makes sense if one considers the extent of illegal gambling in the country. In a 2013 report, the Federation of Indian Chambers of Commerce and Industry had said there was an informal ~300,000 annual betting industry in India.
Recommending linking the betting amount with the player’s PAN card and Aadhaar card, the law panel has also asked the government to modify the foreign direct investment policy to allow FDI in the casino and online gaming industry. Even as India continues to follow an antiquated British-era statute, the UK itself has legalised gambling and betting decades ago. Apart from revenue, legalising and regulating the sector could also help generate valuable employment.
Still, despite the potential for revenue, any such move must to be carried out while ensuring that the poor are protected. A robust regulatory framework governing the sector will ensure that people do not fall prey to the excesses of gambling.