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It is sports, you bet! Law Commission recommends legalising betting in sports

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7 years ago

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It is sports, you bet! Law Commission recommends legalising betting in sports

It’s a piece of news that will be welcomed by many whose interest in sports lies in the money to be made, rather than the side that wins or loses: The Law Commission of India has recommended legalisation of sports betting and gambling activities and regulating them, stating that a complete ban has proved to be “counter-productive” and has only resulted in a hike of “black money generation and circulation”.

It said that since it is impossible to stop illegal gambling, the only viable option left is to “regulate” gambling in sports and it be allowed as regulated activity taxable under the direct and indirect tax regimes and used as a source for attracting foreign direct investment (FDI).

The commission recommended “cashless” gambling in sports and taxing the earnings as a means to increase revenue and deal a blow to unlawful gambling. The money generated can be used for public welfare activities, it said.

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.

The Law Commission report was prepared by a panel headed by Chairman Justice BS Chauhan after the Supreme Court ordered it to study the possibility while hearing a case between the Board of Control for Cricket in India (BCCI) and Cricket Association of Bihar & Ors.

The commission had taken opinion from students, experts and public in general before coming to the conclusion that regulation was needed more than prohibition. It has also proposed that the income earned from these activities should be made taxable. If the proposal goes through, it could lead to a windfall for the government.

“In the light of the fact that the existing black-market operations relating to these activities are a major source of influx of black money in the economy, regulation rather than complete prohibition the logical step to be taken,” reads the report.

While pondering over the question, the commission looked at examples from Mahabharata as well.

“The argument that had gambling been regulated in the Mahabharata period, Yudhishtir could not have put his brothers and wife as stakes, perhaps Mahabharata could not have been there, is full of substance,” noted the commission.

At present, betting is legal only on horse racing, and it is taxed at 28 per cent under GST. The commission recommended that like the exemption for horse-racing as a game of skill, “other skill-centric games may also be exempted from the blanket prohibition on gambling”.

The commission has also recommended amending the laws regulating forex and India’s FDI policy to allow investments in the casino and online gaming industry.

It also proposed strong regulations and laid down several checks and balances to avoid misuse if betting is indeed legalised.

It has stated in its report that such activities should be offered only by operators from India possessing valid licences granted by a game licensing authority.

The commission recommended a classification of ‘proper gambling’ and ‘small gambling.’ ‘Proper gambling’ would be for the rich who play for high stakes, while ‘small gambling’ would be for the low income groups, it said.

Restrictions on amount should be prescribed while using electronic money facilities like credit cards, debit cards, and net banking. Gambling websites should not solicit pornography, it said.

For those who would participate in gambling and betting, there should be a cap on the number of transactions that they can indulge in monthly/yearly etc.

It has also proposed that all betting and gambling activities should be linked to the operator’s and participant or player’s Aadhaar Card/PAN Card, to ensure “enhanced transparency and state supervision”.

Also, transactions need to be cashless, “with penal provisions for cash transactions”, it said.

Those who receive “subsidies or do not pay taxes” have been excluded from participating in such betting and gambling.

Making betting and gambling legal has been debated for long. Estimates about the size of the gambling market in India vary, with a 2010 KPMG report suggesting that it could be $60 billion, but more recent studies peg the value to be much higher, said a News18 report.

According to Doha-based International Centre for Sport Security, the illegal betting market in India is worth $150 billion, or roughly Rs 9.6 lakh crore, the News18 report said. Most of it is via local bookmakers and unregulated offshore websites.

The government could earn tens of thousands of crores as tax revenue by legalising sports betting. Additionally, if online gambling and casinos are also permitted, the estimated tax revenue would be much higher.

In addition to revenue generation, a legal and regulated gambling sector will also help in creating large-scale employment opportunities.

Parliament may also enact a model law for regulating gambling that may be adopted by the states or in the alternative, Parliament may legislate in exercise of its powers under Articles 249 or 252 of the Constitution. In case legislation is made under Article 252, states other than the consenting states will be free to adopt the same, it states.

The commission said it feels that allowing FDI in the industry would bring substantial amounts of investment to those states that decide to permit casinos, propelling the growth of the tourism and hospitality industries, while also enabling such states to generate higher revenue and employment opportunities.

Justice BS Chauhan stated that with time law changes and thus the need is for regulation rather than blanket prohibition. Quoting Justice DP Madon, the commission stated “as the society changes, the law cannot remain immutable” and that “the law exists to serve the needs of the society which is governed by it.”

The primary law on which states have framed their gambling legislation is an archaic, British-era law called the Public Gambling Act, 1867. Ironically, while India follows a British-era prohibitionist statute, the UK legalised and regulated various forms of gambling and betting many decades ago.

The commission report referred to epic Mahabharat to justify its call for regulation of gambling.

“There is merit in the argument that, had gambling been regulated at the time of the Mahabharat, Yudhishtir could not have staked his wife and brothers in a gamble,” the report signed by Justice Chauhan and five other commission members observed.

The commission said that even as Indian society had traditionally frowned upon gambling, the argument made for ‘revenue over morality’ lacked merit. It reasoned that online gambling and betting have acquired a global presence.

“Such activities, if properly regulated would ensure transparency in the market, as also strike at the underworld’s control over the illegal and unregulated gambling industry. Additionally, revenue so generated by regulating and taxing betting and gambling may become a good source of revenue, which in turn, could be used for public welfare,” the commission report said.

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India and Russia vow to walk together against terrorism, reaffirm strategic partnership

PM Modi and President Putin reaffirm India-Russia unity against terrorism, deepen energy and trade cooperation, and discuss peace efforts amid the Ukraine conflict.

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20 mins ago

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December 5, 2025

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Prime Minister Narendra Modi and Russian President Vladimir Putin on Friday underlined that India and Russia “walk together in the fight against terrorism,” reinforcing a decades-old strategic partnership that remains steady amid global geopolitical churn. The leaders issued the joint statement following talks at Hyderabad House in Delhi, where they also announced steps to boost trade, economic cooperation, and energy collaboration.

India-Russia stand firm on counter-terror cooperation

PM Modi described President Putin as a “dear friend” and highlighted Moscow’s consistent support to India on counter-terror efforts. Russia had earlier strongly condemned the terror attack in Jammu and Kashmir’s Pahalgam, allegedly linked to Pakistan-based Jaish-e-Mohammed, and reiterated solidarity with India’s fight against terrorism in all forms.

The joint remarks emphasized that the bilateral friendship, rooted in trust and mutual respect, has remained resilient for decades despite global challenges.

Focus on energy, trade and use of national currencies

A key highlight of the engagement was Russia reaffirming “uninterrupted shipments” of fuel to India. PM Modi expressed gratitude for Russia’s commitment, noting energy cooperation as a crucial pillar of the relationship. While he did not specifically mention oil purchases, given ongoing Western pressure, he emphasised cooperation in civil nuclear and clean energy.

The two countries also discussed expanding economic ties, including a possible free trade agreement. President Putin said bilateral trade was being targeted to reach USD 100 billion, and acknowledged progress toward using national currencies for payments — a remark expected to draw global attention.

Putin shares peace plan insights on Ukraine conflict

Putin briefed the Prime Minister on Russia’s perspective for a peaceful resolution to the ongoing Ukraine war and appreciated India’s continued role as a “champion of peace.” PM Modi reiterated India’s consistent position on dialogue and diplomacy.

Agreements across jobs, health, shipping and minerals

Officials exchanged multiple agreements covering employment mobility, health, shipping, chemicals and cooperation in critical minerals — further broadening the strategic footprint of the partnership.

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RBI cuts repo rate to 5.25%, paving the way for cheaper loans

The RBI has cut the repo rate to 5.25%, aiming to support growth as inflation softens. The central bank also raised GDP projections and announced liquidity-boosting measures.

Published

5 hours ago

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December 5, 2025

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Reserve Bank of India

The Reserve Bank of India (RBI) reduced the key repo rate by 25 basis points to 5.25% on Thursday, signalling relief for borrowers as banks are expected to offer lower EMIs on home and vehicle loans. Governor Sanjay Malhotra announced the move after the conclusion of the three-day Monetary Policy Committee (MPC) meeting.

RBI prioritises growth as inflation eases

Malhotra said the decision was unanimous, with the central bank choosing to focus on supporting economic momentum despite concerns over a weak rupee. The repo rate was earlier cut in June from 6% to 5.5% amid easing inflation trends.

The RBI now projects Consumer Price Index (CPI) inflation at 2% for FY2025-26, significantly softer than earlier estimates. For the first quarter of FY2026-27, inflation is expected at 3.9%, lower than the previous projection. The governor noted that rising precious metal prices may contribute to the headline CPI, but overall risks to inflation remain balanced.

GDP outlook strengthened

In a strong upward revision, the central bank increased the GDP forecast for the current financial year to 7.3%, previously estimated at 6.8%. Growth for the October–December quarter has also been revised to 6.7%.

The last quarter registered a six-quarter high expansion of 8.2%, reflecting resilient demand and steady credit flow.

“The growth-inflation balance continues to offer policy space,” Malhotra said, reiterating that the RBI’s stance remains neutral.

Other key decisions

Alongside the repo rate cut, the RBI announced adjustments to key policy corridors:

  • Standing Deposit Facility (SDF): 5%
  • Marginal Standing Facility (MSF): 5.5%

To improve liquidity and strengthen monetary transmission, the RBI will conduct forex swaps and purchase ₹1 lakh crore worth of government bonds through Open Market Operations (OMO).

RBI reviews a challenging year

Reflecting on 2025, Malhotra said the year delivered strong growth and moderate inflation even as global trade and geopolitical uncertainties persisted. He added that bank credit and retail lending remained healthy, providing support to the economy.

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India News

IndiGo flight chaos deepens as over 500 services cancelled, passengers stranded for hours

Over 500 IndiGo flights were cancelled nationwide, leaving passengers stranded without food, clarity or their luggage as airports struggled to manage the disruption.

Published

6 hours ago

on

December 5, 2025

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IndiGo flight

India’s largest airline continued to face massive operational breakdowns, triggering frustration among travellers at major airports across the country. From piles of unattended suitcases to passengers waiting over 12 hours without food or clarity, the disruption stretched into its fourth consecutive day.

Long delays, no communication leave passengers anguished

Several travellers at Delhi airport described the situation as “mental torture”, as thousands of unclaimed suitcases lay scattered across the terminal. Many slept on the floor, while others expressed anger over the lack of communication from airline staff.

One flier said he had been waiting for over 12 hours without any explanation: “Every time they say one-hour or two-hour delays. We were going to a wedding but don’t even have our luggage.”

A passenger in Hyderabad recounted a similar ordeal, saying the flight was delayed indefinitely with no food, water, or updates from the airline. At the airport, some travellers blocked an Air India flight in protest over the lack of arrangements.

Goa and Chennai airports also witnessed tense moments. Videos from Goa showed fliers shouting at IndiGo staff as police attempted to calm the situation. At Chennai, CISF denied entry to IndiGo passengers due to heavy congestion.

Major metro airports impacted; cascading cancellations nationwide

Flight cancellations and delays were reported across multiple airports:

  • Over 200 flights were cancelled in Delhi
  • More than 100 each in Mumbai and Bengaluru
  • Around 90 in Hyderabad
  • Dozens more in Pune, Vishakhapatnam, Chennai and Bhopal

Pune airport stated that parking bay congestion worsened the situation, as several IndiGo aircraft remained grounded due to lack of crew. Other airlines continued operations without disruption.

Airport authorities said they had mobilised additional manpower for crowd control and passenger support.

IndiGo admits planning lapses, says more cancellations expected

The airline acknowledged a “misjudgment” in assessing crew requirements under revised night-duty norms, which it said created planning gaps. Winter weather and airport congestion further aggravated the crisis.

IndiGo informed the aviation ministry and DGCA that some regulatory changes—such as the shift in night-duty timings and a cap on night landings—have been rolled back temporarily to stabilise operations.

The airline warned that cancellations may continue for another two to three days, and from December 8, schedules will be trimmed to prevent further disruption.

In a message to employees, CEO Pieter Elbers said restoring punctuality would not be an “easy target”.

Airline issues apology amid nationwide frustration

In a late-night statement, IndiGo apologised to customers and industry partners, acknowledging the widespread inconvenience caused by the disruptions. The airline said all teams were working with authorities to bring operations back to normal.

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