Karnataka Government has formed a committee to draft the new legislation aimed at regulating online gamblingand betting platforms, to curb fraudulent practices and support the legal gaming sector.
- Gambling can be defined as a game comprising three key elements: consideration, an element of chance, and a reward.
Need for regulating online betting
- Better monitoring and enforcement: legalisation of regulated betting and gambling activities, asserting that a complete ban has not been returning the desired results. (276th Report of Law Commission)
- To address the issue of match-fixing: Regulating betting could help reduce unethical participation by sportspeople in betting. (Justice Lodha Committee)
- Curbing black money: FICCI has been urging the government to legalize betting, estimating potential revenues of 12,000-19,000 crore rupees.
Concerns in regulating online betting and gambling
- Games of skill: Sports betting conceptually resembles horse betting therefore sports betting should be permitted in India.
- In RMD Chamarbaugawala v. Union of India Case (1957), Supreme Court held that activities involving substantial skill are considered commercial and are protected under Article 19(1)(g) of the Constitution.
- Gambling is a state subject: It will violate the federal principle of division of power between centre and states, if Centre attempts to regulate it.
- Effect on tourism: Most states have banned it for locals but Gambling is a tourist attraction in states like Goa.
Existing Regulatory Framework
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