betting cricket should legalised notWhy gambling, betting should be legalised in India
Photographs: Reuters
Rajeev Kumar
Gambling has been a part of our ethos since ancient times. During the Mahabharata period, there is reference to the Pandavas playing the game of dice with Kauravas.
Similarly during Diwali, Indians in many parts of our country indulge in some sort of ‘gambling’ activities, sometimes unaware that most of this is illegal. Currently, gambling through lottery tickets and horseracing are legal in India.
However, illegal betting in cricket and other sports like football and Formula 1 racing in India is where the big money lies and it is quite a huge, albeit clandestine, business here.
In the Indian society, there is widespread and deep-rooted belief that ‘gambling’ is ‘bad’ or ‘a social evil’. Negative perceptions about the gambling industry across the population in general, as well as in media and government, have restricted the growth potential of the industry.
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Image: Angry Pakistani cricket fans burning posters of cricketers allegedly involved in spot fixing.Photographs: Reuters
It is certainly true, to some extent, that uncontrolled gambling or ‘addiction’ of gambling is a really bad habit.
However, gambling per se is not bad. It’s depends on individuals and how one ‘gambles’.
According to the UK Gambling Act of 2005, betting or gambling means ‘the making or accepting of a bet on the outcome of a race, competition or other event or process; the likelihood of anything occurring or not occurring; or whether anything is or is not.’
As per this definition, gambling is a ‘chance’ activity with a monetary value attached to it. Don’t we all, in our daily lives, get involved in some form of ‘chance’ activity, like when we say ‘today it will rain’, ‘tomorrow it might be sunny day’, ‘the train will be late by 30 minutes’, etc? The only exception, of course, is that we do not attach any monetary value to our ‘predictions’.
The gambling industry comes under the ‘leisure’ part of the travel and transportation industry. It includes sports betting, lottery, Bingo, casino, poker, horseracing and other games that might end up making or losing money for those who play it. Stakes can also be placed on activities like a war, a movie, the elections, TV shows, celebrities, etc.
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Image: Horse racing is legal in India.Photographs: Reuters
Worldwide, gambling is an important source of economic activity and also of employment. According to H2 Gambling Capital, May 2010, the global e-gambling (gambling on the Internet) market is worth over $30 billion. People in countries such as the United Kingdom, Italy, etc indulge in the gambling activity for fun, pleasure and relaxation.
In terms of output and employment, in the UK the gambling industry contributes significantly. In 2008, gambling was responsible for 3 billion pounds ($4.65 billion) in gross value-added terms and helped create 40,700 equivalent jobs.
The total economic impact of the betting industry, in terms of direct and indirect influence, is to the tune of 6 billion pounds ($9.3 billion) and it also supports over 100,000 jobs in British economy.
In Europe, countries such as France and Italy are in the process of drafting laws that would allow online gambling.
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Image: Some cricketers who were involved in match fixing scandal.
In India, gambling-related activities could be marketed as a ‘pleasure’ or ‘fun’ part of tourist activities. South-east Asian nations like Singapore and Thailand which have much smaller number of tourist spots compared to India are able to attract more international tourists and tourism-related revenue than India owing to this very aspect.
In the beginning, some hotels in a few, selected important tourist centres in India — like Agra, Jaipur, or Delhi, etc — should be allowed to operate casinos, etc. This can help attract more foreign tourists and valuable foreign exchange. For this to be well regulated, local and national laws would need to be amended suitably.
Gambling laws in India are outdated and unclear. India needs to set up a national level Gambling Regulatory Authority on the lines of the UK Gambling Commission to regulate the gambling market.
The growth of the gambling industry can have a positive, multiplier effect on other sectors in the supply chain — such as making casino games, software testing, real estate, advertising, banking and finance, hotels, cruises, pubs, etc.
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Photographs: Reuters
If the gambling is legalised in a controlled manner in India, thousands of crores (billions) of rupees in black money involved in the illegal gambling activity currently could be made available to the legal economy. The Indian economy is already losing this precious revenue whether betting is legalised or not.
There is no doubt that the potential of gambling industry in India is very huge. India with her young population, robust economy and an almost superpower status in IT provides positive factors for the growth of gambling industry.
It is up to the policy makers and the Indian government to provide the right legal framework and appropriate policies to tap the huge potential of gambling industry in India.
Gambling in India is quite rampant, be it related to the monsoons or the elections or sports, even though it is considered a social evil by most. Without a strong regulatory structure to oversee this illegal activity, the government loses a huge amount of revenue that could be put to better use — like building schools, hospitals, infrastructure, etc. Perhaps, betting cricket should legalised notWhy gambling, betting should be legalised in India it is time we shed our reticence on the issue.
The author is Senior Consultant-IT Services, MindTree. The views expressed here are solely of the author.
betting cricket should legalised notWhy Is Betting on Cricket Still Not Allowed in India？
Cricket, for many people in India, is bordering on religious status. Think football in the United Kingdom for a minute, and then understand that even this obsession doesn’t even come close to what cricket is for Indian fans.
So why is betting on cricket still illegal throughout India today? No doubt there are many millions in the country still wondering. After all, there are still plenty of grey market options available; a search for parimatch India review will reveal just how good many of these are.
The world of sports betting has grown exponentially over the last decade, particularly online. The number of options available grows on an almost daily basis. And yet, many countries are still resistant to this change, refusing to allow adults to make a free choice for themselves.
The dangers of problem gambling are well-known but the industry is now far more on top of regulation to protect the vulnerable than it was even a few years ago.
Today there are offshore betting sites servicing many of the 400 million Indians who watch sport every year, but nothing within the country itself except for those who offer odds on horse racing.
What makes the current situation almost laughable, is that the entire country, and certainly all of the politicians, are aware of the underground cricket betting scene and yet no powerful voice has emerged to suggest regulating and taxing what would be a multi-billion dollar industry.
In a fast-developing nation such as India, this money could be put to good use in many different ways.
Every year, underground bookies in India play the same cat and mouse game where they relocate to out-of-the-way small towns and set up new phone accounts in the names of their customers. Here they take bets for major cricket series and rake in the cash without ever having to pay a penny in tax.
Even the police are saying anonymously that legalisation is the only way forward as they stand next to no chance of catching the dodgy bookmakers.
Another possible reason why cricket betting is still not legal in India is the high number of match-fixing scandals that have plagued the game over the last couple of decades. Cricket is a game that more easily lends itself to individual players being able to manipulate play in order to cash in on illicit bets.
As good as raking in the tax from a legalised cricket betting industry sounds, it turns out that not all is sunshine and puppies with the idea.
Betting on horse racing at race clubs did bring in plenty of legitimate tax income but the extortionate rate is driving many customers back to the underground bookies. The Royal Western India Turf Club, the biggest race club in India, takes almost 30% as commission from customers’ winnings.
Starting around 2013, there was as much as a 50% increase in betting on horse races with underground bookies over a three-year period. Jaydev Mody, chairman of Delta Corp, which runs two casinos in Goa, claims that a regular tax rate of 4-5% would easily ensure 95% compliance with the law.
For now, though, it looks as if the betting cricket should legalised notWhy gambling, betting should be legalised in India ban on cricket betting in India is here to stay.
betting cricket should legalised notWynnBET Scores Approval for Betting License in Massachusetts
Following PASPA’s revocation back in 2018, the statewide expansion of sports betting started. To date, more than 30 US states have legalized and introduced the activity, while in five states, the activity is legal but not operational. Massachusetts legalized sports betting back in August this year, but the launch date is not confirmed yet. Still, the regulator in the state, issued the first conditional approval for a sports betting license earlier this week.
The gambling watchdog in Massachusetts, the Massachusetts Gaming Commission, conditionally approved WynnBET to apply for a temporary online sports betting license in the state. This marks an important step for Massachusetts on its way to creating a robust regulated sports betting market.
The Massachusetts Gaming Commission’s decision follows a public hearing. The Commission explained that “WynnBet would be tethered to Encore Boston Harbor,” a property that was approved for a Category 1 sports betting license recently. In fact, Encore Boston Harbor is currently the only venue that has secured approval for a retail sportsbook in Massachusetts.
Besides the conditional approval for a temporary online sports betting license, the gambling watchdog discussed another issue earlier this week. On Monday, the regulator in Massachusetts opened the topic about taxation of promotional betting offers, such as getting up to $100 for the first bet that is lost. Sportsbooks in other states provide such offers in an effort to engage with new customers. At the same time, such bonuses or sign-up offers help with player retention and acquisition.
However, the taxation of free bets is currently in limbo, at least for Massachusetts. According to a report released by the State House News Service, upon discussing the taxation of promotional play credits, the gambling regulator did not come to a conclusion on Monday this week.
The gaming watchdog acknowledged that such offers help attract customers but also noted that their taxation plays an important part. “Whether some or all of the $1,000 that FanDuel would give a player to bet with them is counted as part of the company’s taxable revenue base has significant tax revenue implications for the state and profit implications for operators,” the report said. betting cricket should legalised notWhy gambling, betting should be legalised in India While the recent discussion did not come to a conclusion about the tax on free bets, it also did not pin down a date when the debate will continue.
betting cricket should legalised not[Burning Issue] Should Betting Be Legalised in India
Why in News
The?Law Commission?has recommended that gambling and betting on sports, including cricket, be allowed as regulated activities taxable under the direct and indirect tax regimes and used as a source for attracting foreign direct investment (FDI)
The commission’s report, “Legal Framework: Gambling and Sports Betting including Cricket in India”, recommends a number of changes in the law for regulating betting and generating tax revenues from it
Definition of Gambling & Betting
Betting is considered to be a form of gambling. 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 cockfights, animal races and similar contests.
Law Commission Recommendations
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 the 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.
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 has not completely eradicated the problem but it has driven it straight to the black-market. This in turn has resulted 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.
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 activities. 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 a 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, etc.
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
Practice Question
A complete restriction on betting has not eradicated it but has sent the activity betting cricket should legalised notWhy gambling, betting should be legalised in India ‘underground’ covered in the murky undertakings of the crime syndicates. In the light of the above statement critically analyse the recent proposal of Law commission to regulate gambling and betting on sports in India?
