Betting and gambling have been integral parts of society since ancient times. Betting involves an agreement where people guess outcomes, and those who guess incorrectly must give something (often money) to those who guess correctly. This activity has been seen as fun and recreational for decades. However, governments worldwide have made it illegal, attaching various penalties to it. Despite these regulations, betting remains prevalent, generating black money used for corruption, criminal activities, and terror financing. Legalizing betting could curb these activities and generate significant revenue for the government through taxation.
Gambling is a notable industry around the globe, which makes up 0.6% of world trade, approximately US$384 billion. It is popular among millions who enjoy betting on the outcomes of sports events. Despite being seen as a recreational activity, betting raises ethical and moral concerns and is often linked to financial ruin and corruption. However, many argue that legalizing betting could bring economic benefits and reduce illegal activities. This article explores whether betting should be legalized in India by examining current legislation, potential tax revenues, and proposed regulations.
Entry 34 of the State List in the Indian Constitution mentions betting and gambling, making it a state subject. The Public Gambling Act, 1867, is the central legislation that governs gambling in India. Section 12 of this act differentiates between a 'game of skill' and a 'game of chance,' with the former being legal and the latter prohibited. The distinction is crucial in understanding how betting, especially on sports, fits into the legal framework.
Legalizing betting could generate significant revenue for the state exchequer. For example, an estimated Rs. 720 crore is bet on an average One Day International cricket match. Comparing international examples, the UK generated over $1.8 billion from gambling taxes in the first half of 2022. Similarly, Ontario saw $168 million in revenue from sports betting in the first three months of legalization. These examples highlight the potential economic benefits of legalizing and regulating betting in India, including employment opportunities and enhanced sports infrastructure.
To legalize betting, the government would need to implement robust regulations. The Supreme Court-appointed Lodha Committee suggested reforms for the Board of Control for Cricket in India (BCCI), including the legalization of betting to curb corruption. The Law Commission of India also recommended legalizing betting, proposing measures such as:
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