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

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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.

India News

PM Modi’s Indonesia visit to boost defence, digital and strategic partnership

Prime Minister Narendra Modi’s Indonesia visit is expected to strengthen bilateral ties through new initiatives in defence, digital infrastructure, maritime security, trade and critical minerals.

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PM Narendra Modi

Prime Minister Narendra Modi’s upcoming visit to Indonesia is expected to give fresh momentum to the growing strategic partnership between the two countries, with discussions likely to cover defence cooperation, maritime security, digital connectivity, trade, critical minerals and several other sectors.

India’s Ambassador to Indonesia, Sandeep Chakravorty, said the relationship between New Delhi and Jakarta has entered a stronger phase following Indonesian President Prabowo Subianto’s visit to India as the Chief Guest for the Republic Day celebrations last year. He said the Prime Minister’s visit is expected to further strengthen this trajectory through a series of new understandings and agreements.

Defence and maritime cooperation likely to receive major push

According to the ambassador, defence and maritime security will remain key pillars of the discussions during the visit.

He highlighted Indonesia’s strategic location along the Malacca Strait, describing secure sea lanes as vital for both countries and the wider Indo-Pacific region. He stressed that uninterrupted maritime connectivity remains essential for global trade and regional stability.

Without revealing specific details, Chakravorty indicated that the visit could produce significant outcomes in defence cooperation, saying several important announcements are expected.

‘BrahMos Plus’ hints at broader defence partnership

The ambassador also suggested that defence ties between India and Indonesia are moving beyond discussions centred on the BrahMos supersonic cruise missile.

Responding to a question about future cooperation, he remarked that the next phase would be “BrahMos Plus,” while refraining from providing further details.

He said future collaboration is expected to focus on defence manufacturing, technology partnerships, training and capacity building. India, he noted, has emerged as an important exporter of defence equipment and could support Indonesia’s efforts to strengthen its domestic defence manufacturing capabilities.

Military cooperation is also expanding, with India set to participate with troops for the first time in the multinational Garuda Shield military exercise after previously attending as an observer.

Digital connectivity and UPI integration gain momentum

Digital cooperation is expected to be another major highlight of the visit.

The ambassador said Indonesia is preparing to launch its Open Network for Digital Commerce (ONDC)-inspired platform during Prime Minister Modi’s visit, making it the fastest international adopter of India’s digital public infrastructure model.

The initiative is expected to support nearly 65 million micro, small and medium enterprises (MSMEs) in Indonesia by creating a more open digital commerce ecosystem.

Chakravorty also said discussions on integrating India’s Unified Payments Interface (UPI) with Indonesia’s payment systems have reached an advanced stage.

While technical integration remains complex due to Indonesia’s multiple payment-switch networks, he expressed confidence that progress would continue and the Prime Minister’s visit could accelerate the process.

Critical minerals and investment to feature prominently

Critical minerals are also expected to be a major area of cooperation as both countries look to strengthen supply chains for clean energy technologies and electric vehicle manufacturing.

Indonesia possesses significant reserves of nickel and other strategic minerals, while India is seeking reliable supplies to support its manufacturing ambitions.

The ambassador said India plans to invest in processing critical minerals within Indonesia rather than importing only raw materials. He added that such investments would support industrial development in both countries while contributing to India’s self-reliance goals.

Cultural ties to be highlighted

Apart from strategic and economic cooperation, the visit is also expected to showcase the longstanding cultural relationship between India and Indonesia.

Both countries will launch a 15-month programme commemorating Rabindranath Tagore’s 1927 visit to Indonesia, recognising his influence on the country’s educational and cultural landscape.

Prime Minister Modi is also expected to visit Yogyakarta, a city known for its historic temples, reflecting the deep civilisational links shared by the two nations.

With cooperation expanding across defence, digital infrastructure, trade and critical minerals, the visit is expected to mark another important step in strengthening the India-Indonesia strategic partnership and advancing cooperation in the Indo-Pacific region.

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India News

Ram Mandir Trust accepts Champat Rai’s resignation amid donation theft row

The Shri Ram Janmabhoomi Teerth Kshetra Trust has accepted Champat Rai’s resignation as General Secretary following the donation theft controversy, with Bajrang Bagra emerging as a leading contender for the post.

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Champat Rai

The Shri Ram Janmabhoomi Teerth Kshetra Trust has accepted the resignation of its General Secretary, Champat Rai, following the controversy surrounding the alleged theft of cash donations at the Ram Temple in Ayodhya.

According to sources, Bajrang Bagra has emerged as one of the leading contenders for the post. Bagra currently serves as the International General Secretary of the Vishwa Hindu Parishad (VHP). A chartered accountant by profession and a former head of PSU NALCO, he is considered to have the administrative and financial expertise required as the Trust moves into its next phase.

Sources indicated that the Trust is looking to appoint someone with strong experience in governance, finance and institutional administration to strengthen its functioning.

Although Champat Rai has stepped down as General Secretary, sources said he is expected to continue as a trustee unless he decides otherwise.

Decision on successor may come after VHP executive meeting

The appointment of the next General Secretary is unlikely to be announced immediately. The VHP’s biannual national executive meeting is scheduled to take place in Delhi on July 19 and 20, where several organisational decisions, including transfers and appointments, are expected to be discussed.

Champat Rai and trustee Anil Mishra had submitted their resignations after Uttar Pradesh Chief Minister Yogi Adityanath reportedly took a firm stand on the alleged donation theft. Their resignations came after the Special Investigating Team (SIT) submitted its preliminary findings into the case.

Donation theft investigation

According to the preliminary investigation, temple staff responsible for counting cash donations allegedly siphoned off money despite CCTV cameras being installed at the counting centre. The report stated that the footage was not monitored regularly, allowing the alleged theft to continue. Reports suggest that around Rs 7 crore to Rs 7.5 crore may be missing.

So far, eight people have been arrested in connection with the case. Among them is Ram Shankar Yadav, also known as Tinnu Yadav, who worked as Champat Rai’s driver.

Sources said Champat Rai has told his close associates that Tinnu Yadav played the central role in the alleged fraud and misused the trust placed in him. According to the sources, Rai also claimed that when Yadav feared he would be caught, he leaked information to a Samajwadi Party leader.

The other accused arrested in the case are Avinash Shukla, Anukalp Mishra, Lav Kush Mishra, Manish Kumar Yadav, Karunesh Pandey, Ramashankar Mishra and Subhash Srivastava.

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WhatsApp gets more time to respond on username feature, rollout in India put on hold

WhatsApp has been granted more time to respond to the government’s concerns over its username feature and has assured that it will not launch the feature in India until discussions are completed.

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WhatsApp

Meta assures the government that the feature will not be introduced in India until ongoing consultations are completed.

Meta-owned WhatsApp has been granted an extension to submit its response to the Centre regarding its proposed username feature, while assuring the government that it will not roll out the feature in India until discussions on the matter are concluded.

According to sources, the government has allowed WhatsApp three additional days to file its response after the company sought more time. The original deadline for the reply was Friday.

The proposed username feature would allow users to connect with others without revealing their phone numbers, a move that has raised concerns within the government over its potential impact on cyber safety.

Last week, the Centre issued a notice to Meta questioning the feature, expressing concerns that it could increase online fraud, phishing attempts, impersonation, and so-called “digital arrest” scams. The government also directed the company to pause the rollout until consultations are completed to its satisfaction.

Sources said representatives from Meta met officials from the Ministry of Electronics and Information Technology (MeitY) on Friday following the issuance of the notice. During the discussions, WhatsApp reportedly assured authorities that the feature would not be introduced in India before the consultation process is completed.

The government has also asked Meta to explain why action should not be initiated under the Information Technology Act and the relevant rules if the proposed feature is found to compromise user safety. It reminded the company that WhatsApp, as a significant social media intermediary, must comply with due diligence obligations under Indian law.

A WhatsApp spokesperson had earlier clarified that the username feature is not yet live and is expected to be introduced gradually later this year.

The company said it has built several safeguards into the feature to prevent impersonation. According to WhatsApp, usernames of public figures, government entities, celebrities, and verified Meta accounts have been reserved so that they can only be claimed by their legitimate owners. It also said lookalike variations of such usernames are being restricted.

WhatsApp also clarified that users will still need a phone number to create and use a WhatsApp account. The username feature is intended only as an alternative way for people to connect.

The company added that users would need to know another person’s exact username before initiating contact. It also plans to limit how many new users an account can message, prevent repeated attempts to guess usernames, and use automated systems to detect impersonation and abusive behaviour.

To help users identify unfamiliar contacts, WhatsApp said it will display contextual information whenever someone sends a message through a username for the first time. Users will be informed whether the sender is a new account, an existing contact, someone who shares a mutual group, or a person located in another country before deciding whether to respond.

Following its notice to WhatsApp, the IT Ministry also issued notices to Telegram and Signal, seeking details on how their existing username-based systems address concerns related to fraud and impersonation. While WhatsApp has around 500 million users in India, Telegram has a significantly smaller user base.

In recent days, Meta and Telegram have also come under regulatory scrutiny on separate issues. The government recently issued a notice to Meta regarding child sexual abuse material appearing in Instagram advertisements, while Telegram was directed to strengthen action against the circulation of pirated films, OTT content, and other copyrighted audio-visual material on its platform.

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