Insight INDIA Legislation
Shashi Taroor, Member of Parliament
Shashi Tharoor is an Indian politician, writer and a former international diplomat who is currently serving as Member of Parliament, Lok Sabha from Thiruvananthapuram, Kerala, since 2009. He also serves as Chairman of the Parliamentary Standing Committee on Information Technology and All India Professionals Congress.
Online gaming and prevention of fraud: objects and reasons
“India has a rich heritage with a diverse range of sports. Sports is not only an important source of entertainment, but it also imparts values of hard-work, discipline and of cooperation. It encourages social cohesion, and is an important catalyst in bringing societies together. Sport contributes to national integration and is a significant component of a country's soft power.
The need of the hour is a comprehensive regulatory framework, overseen by a competent regulatory body, to check the flow of black money in online sports gaming, and to curb any illegal activities in connection with it. Apart from the check on criminal activities, the regulation of online sports gaming may encourage investment in the sector, which in turn can lead to technological advancements as well as revenue and employment generation.
Te proliferation of sports also helps in creating employment, and enables people to make a living using their mental and physical skills and talents. Te integrity of sports is essential to preserve its beneficial aspects. Sports integrity is increasingly under threat due to unabated acts of sports fraud and corruption.
Te existing legal framework has failed to address the specific problem of sports fraud, and prosecutions involving allegations of manipulation of sports have collapsed due to statutory lacunas. Terefore, legislative measures are required to act as a bulwark against any attempt to manipulate a sporting event, and to stringently penalize any person involved in sports fraud.
Te failure to report any information regarding the attempts to commit sports fraud must also be penalized, as such as omissions facilitate criminal activities. Te legal mandate against sports fraud should also be applicable to citizens of India participating international sporting events, even though it may be held outside the territory of India. Sports is a major source of commerce and revenue for many entities, especially in the field of betting or gaming in connection with sporting events.
Studies estimate that the market for online gaming in India will rise to $1 billion by 2021. Te increasing commercial nature of sports, increases the possibility of vested interests manipulating sporting events in order to accrue financial gains. A complete prohibition on betting on sports has not been a successful approach in many jurisdictions, rather it has driven the market further into the black economy.
Te law must adopt a regulatory approach and P224 NEWSWIRE / INTERACTIVE / MARKET DATA
establish a regulatory framework, to effectively demarcate the lines of permissible conduct in the field of betting or gaming in connection with a sporting event. Betting and gambling are State Subjects however, the Parliament of India has the legislative competence to enact a law to govern online betting and gambling in light of its powers under Entry 31 of List 1 of the Seventh Schedule to the Constitution, as explained in the 276th Report of the Law Commission of India.
Te need of the hour is a comprehensive regulatory framework, overseen by a competent regulatory body, to check the flow of black money in online sports gaming, and to curb any illegal activities in connection with it. Apart from the check on criminal activities, the regulation of online sports gaming may encourage investment in the sector, which in turn can lead to technological advancements as well as revenue and employment generation. Hence, this Bill.”
THE LAW COMMISSION OF INDIA Conclusions and Recommendations Report No. 276
www.lawcommissionofindia.nic.in
“With the advent of online gambling and the anonymity that it ensures, the gambling and betting activities have acquired a global presence. It has, therefore, become more challenging for countries to monitor or curb these activities.
Many countries that prohibit gambling have not been successful, particularly with regard to online gambling. Te trans-national character of online gambling platforms calls for a much needed change in approach. With the changing times, there could
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