The regulation of gambling can have a positive effect on a country. First of all, it prevents illegal (online) gambling. The government has more control over the gambling market. Second, it’s good for the state budget. The State Law Commission of India realizes this as well. It recently published a report of 145 pages about the regulation of gambling in India. What exactly can be read in the report?
Prevention of online gambling activities in India
The State Law Commission of India says that the government must legalize and regulate gambling to prevent the growth of online gambling activities in the country. By legalizing games of chance and sports gambling the government can win back the market, which is currently in the hands of (online) gambling companies. India will immediately benefit from a gambling legalization, since more money goes to the state budget. Besides that, gamblers will have less stress when gambling becomes legal.
India and gambling: a long history
India and gambling have a long and difficult relationship. Gambling has been forbidden in the country since the colonial age. According to the Public Gambling Act (1867) it’s not allowed to organize any form of gambling in India. The rules are very strict. Not just the 19th century ones, but the 21st century ones as well. According to the Information Technology Act (2000) gambling has a bad influence on people. Everyone who still gambles can be sentenced to 5 years in prison or a fine of 100.000 rupee, about 1250 euros.
Suggestions from the India Law Commission
This is why the India Law Commission has done some suggestions to fight against it. One of them is the legalization of (online) gambling. Another idea is to connect the gambling transactions of players to their identity cards. This does not only show the number of gamblers, but also prevents money laundering and fraud. Another effect might be that less players develop a gambling addiction.
Two groups of gamblers
Another interesting suggestion from the Commission is to make two groups of gamblers, respectively ‘Proper Gambling’ and ‘Small Gambling’. People with a higher income a part of the first group, and lower income people belong to the other group. They can spend lower amounts of money to gamble.
Will gambling legalization really be effective?
India is not the only country with talks about gambling legalization. The government in the Netherlands wants to legalize online gambling, but there is no date when this will happen. Of course there are some people against the legalization of online gambling, whether they Dutch or Indian. Critics think that legal gambling will not help the economy of India. Others think that the legalization will only have an opposite effect, namely that more people become poor because of gambling.