Mentor’s comment:

Introduce by bringing general meaning of gambling and betting or defining it. Also mention the Law Commission 276^th report which was prepared in pursuance of the SC order where SC asked to study the possibility of legalizing betting in India.

Further, mention consequences that ensue due to unregulated gambling and betting in India. i.e. it leads to underground activities, corrupt practices and illegal growth of trade and commerce. A total ban would straight forward drive towards black marketing making it harder to monitor.

Next, mention advantages of regulating gambling and betting. i.e. employment generation, protection to youth, easy to monitor and blow against organized crime and apart from these the generation of revenues etc.

Next, mention what we can learn from international perspectives on gambling and betting. i.e. protecting the public from negative effects of such practices, primacy to religious morality which says complete ban on betting while on the  other hand it generates revenue, trade and encourage tourism and employment etc. some countries allow a balanced approach in gambling and betting while regulating it effectively.

Next, mention what needs to be done? We can also cite the recommendations of various commissions.

Bring conclusion based on the content of main body.

 

Model Answer:

Definition

Gambling & Betting

• Betting is  considered  to  be  a  form  of    The  main  difference  between  the  two  activities  is  that  in gambling ‘the stakes’ or ‘the wager’ is placed on an event without any basis of the outcomes, whereas in betting the stakes are placed, based on at-least an idea or the performance about the said betting event.
• Kautilya’s Arthashastra  defined  gambling  as  wagering  with  inanimate  objects  such  as  dice;  and  betting  as something that involved challenges and was concerned with cock fights, animal races and similar contests.

Law Commission  of India  released its  276^th  Report on  Legal Framework: Gambling and Sports Betting Including in Cricket in India.  The  Report  was  prepared  by  the  Law  Commission  in  pursuance  of  Supreme  Court’s  order  in  the case  ofBoard of Control for Cricket in India v. Cricket Association of Bihar & ors.wherein  the  Apex  Court  had asked the Law Commission to study possibility of legalizing betting in India.

Consequences that ensue due to unregulated gambling and betting

• Some of the major problems related to illegal gambling and betting activities are the exponential growth of illegal trade and commerce, and corrupt practices such as spot-fixing and match-fixing being employed in sports.
• A total of 2916 cases have been registered under the gambling act in a period of 28 months, i.e., 104 cases per month, on an average.
• The Delhi Police terms gambling as “connecting crime” that connects the gambler with other criminal activities. In order to regain the lost money or in an attempt to ‘invest’ more money into gambling, expecting more return an illegal gambler is bound to end up in committing other crimes like chain snatching, looting, stealing, etc.
• A total  ban  on  gambling  and  betting  activities  would  not  completely  eradicate  the  problem  it  would  drive  it straight to the black-market. This in turn would result in making it harder to monitor such illegal activities.
• Illegal betting  causes  substantial  monetary  loss  to  the  economy,  with  profits  escaping  the  purview  of  taxation, and also increases the circulation of black money in the market.
• It is easier to monitor illegal betting activity in a regulated market.
• Countries like  Australia,  United  Kingdom,  South  Africa,  Sri  Lanka  and  New  Zealand  have  taken  a  step  in, legalising and regulating betting in sports.

Advantages of a regulated gambling and betting industry

• Protection for the young and vulnerable against the dangers of unwise betting behaviour.
• Employment generation (more than 8000 people are employed in casinos in Goa).
• Fairer and more trusted betting experience for consumers, offering entertainment in a controlled and responsible manner.
• Blow against  organized  crime  like  match  fixing  which  threaten  to  damage  public  trust  both  in  sport  and  in  the legitimate betting industry.
• Generation of  revenues  from  taxation  of  sports  development  and  preventing  sport  betting  from  being  linked  to criminality or used to launder proceeds of crime.
• Protection of players, coaches and all involved with sport from unprincipled approaches.

Lessons from International Perspective on Gambling & Betting:

• Countries across  the  globe  have  adopted  three  approaches  in  the  matter  of  regulating  gambling  and  betting activities.
• Some Countries,  especially  those  which  give  primacy  to  religious  morality,  have  taken  the  view  that  the  role  of government is to protect its citizens from the negative effects of such activities.
• The Countries  that  give  primacy  to  religious  morality  often  impose  a  complete  ban  on  gambling,  while  others view gambling and betting as an industry to drive trade and revenue; and encourage tourism and employment.
• Some countries also operate between these two extremes, striking a balance and permit gambling in a controlled and regulated  environment;  as  a  result,  they  earn  substantial  revenue  from  the  tax  imposed  on  such  This revenue can be utilized for promoting sports, cultural, charitable activities or any other activity aimed at the economic growth or development.

What needs to be done?

• Legalizing betting and gambling is not desirable in India in the present scenario. Therefore, the State authorities must ensure enforcement of a complete ban on unlawful betting and gambling.
• However, 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.
• But law  commission  recommends  that  regulated  gambling  would  ensure  detection  of  fraud  and  money laundering,    Such  regulation  of  gambling  would  require  a  three-pronged  strategy,  reforming  the  existing gambling  (lottery,  horse  racing)  market,  regulating  illegal  gambling  and  introducing  stringent  and  overarching regulations.

Commission also recommends:

• Parliament may  also  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.
• Gambling and  betting,  if  any,  should  be  offered  only  by  Indian  licensed  operators  from  India  possessing  valid licenses granted by the game licensing authority.
• Gambling must  be  classified  into  two  categories,  namely  ‘proper  gambling’  and  ‘small  gambling’.  ‘Proper gambling’ would be  characterized by higher stakes, whereas individuals  belonging to  the lower income  groups  will  have to confine themselves to ‘small gambling’.
• The transactions made between and among operators and players/participants indulging in these activities should mandatorily be made ‘cashless’.
• Any income derived from such activities should be made taxable under the Income Tax Act, 1961, the Goods and Services Tax Act, 2017.