Allow gambling, betting on sports as regulated, taxable activities: Law Commission

The Law Commission of India (LCI) in its report “Legal Framework: Gambling and Sports Betting including Cricket in India”, has recommended that gambling and betting on sports be allowed as regulated activities. It recommended number of changes in law for regulating betting for making it taxable under direct and indirect tax regimes and used as source for attracting foreign direct investment (FDI). The commission is led by former Supreme Court Justice BS Chauhan

LCI Recommendations

Parliament may also enact model law for regulating gambling that may be adopted by states or Parliament also 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 consenting states should be free to adopt the same.
It recommended linking Aadhar or PAN card of individual indulging in betting and gambling and making transaction cashless to regulate illegal activities such as money laundering. It also recommended amending laws regulating forex and India’s FDI policy to allow investments in casino and online gaming industry.
It suggests amending Foreign Exchange Management Act (FEMA), 1999 and rules made thereunder and also Foreign Direct Investment (FDI) Policy to encourage Foreign Direct Investment (FDI) in casino and online gaming industry, lawfully permitting technological collaborations, licensing and brand sharing agreements, etc.
FDI in casino and online gaming industry will 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.

Law Commission of India (LCI)

The LCI is a non-statutory and non-constitutional body constituted by the Union Government from time to time. The first commission was constituted in 1955 and since then various commissions were re-constituted every three years. It is usually headed by a retired Supreme Court judge or former Chief Justice of a high court. The Secretary Department of Legal Affairs and Secretary, Legislature Department of Union Ministry of Law & Justice are ex-officio members of the Commission. So far, various Law Commissions have submitted 262 reports to make important contribution towards codification and progressive development of laws of the country.


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