Context:

• As per estimates of Think Change Forum (TCF) report, Illegal betting activities related to the Cricket World Cup 2023 in India are causing significant tax losses, with an estimated inflow of Rs 8,20,000 crore ($100 billion) per year.

Illegal Betting and Gambling

• As per estimates, more than 140 million people in India participate in betting and gambling regularly and this number shoots up to 370 million during the IPL.
• To attract Indian users, gambling sites have secured the endorsement of popular Bollywood actors and sports figures.

What is Gambling?

• Gambling is the risking or staking of money or any other valuable security which may be referred to as “stakes” on an event that does not have a certain outcome.
• It can take various forms and is commonly associated with activities such as casino games (slot machines, roulette, and poker).
• The Public Gambling Act 1867 also known as the Gambling Act is the general law that governs gambling in India. However, gambling is largely a state subject and comes under the State list of the 7th Schedule of the Constitution.
  • This means that only the state has the right to regulate laws (State-specific) related to gambling activities in their territory.
  • For example, states like Maharashtra, Telangana, and Andhra Pradesh have specific laws that make most forms of online gambling illegal.

Concerns raised in report

• Funds are funnelled through mechanisms like hawala, cryptocurrencies, and other illicit channels, posing a threat to the nation’s financial stability. 
  • These diverted funds may fund illegal activities, undermining public order and national security.
• Delay in forming of Self-Regulatory Organizations (SROs) will allow illegal offshore betting sites to flourish.

Recommendations

• Strict implementation of the new GST regime by establishing a task force.
• Monitoring of  illegal offshore betting activities and forcing offshore operators to register in India to protect the outflow from legal gaming platforms to offshore platforms.

News Source: Tribune