The Law Commission has recommended that gambling and betting on sports like cricket must be legalised. According to the recommendation of the Law Commission, gambling and betting on sports must be allowed as regulated activities, which are taxable.
The recommendation calls for such activities to be allowed and made taxable under the direct and indirect tax regimes. It says that the process should be used as a source for attracting Foreign Direct Investment (FDI), reported news agency ANI.
The commission has further recommended that the Aadhaar and Permanent Account Number (PAN) of any individual indulging in betting or gambling must be linked with his transactions. It also recommends making the transaction cashless to regulate illegal activities like money laundering.
The report of the Law Commission has been titled 'Legal Framework: Gambling and Sports Betting including Cricket in India'. News agency PTI quoted the report as saying, "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."
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.
"The Foreign Exchange Management Act, 1999 and the Rules...Made thereunder as also the Foreign Direct Investment (FDI) Policy...May suitably be amended to encourage Foreign Direct Investment in the casino/online gaming industry, lawfully permitting technological collaborations, licensing and brand sharing agreements, etc," the Law Commission has said as part of its recommendations.
According to the commission, 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".
(With agency inputs)