K Raveendran
In the wake of cryptocurrencies gaining legitimacy with the imposition of 30 percent sin tax on the transactions, it may now be considered the next logical step to similarly recognise gambling and betting too as legitimate sporting activity. Revenue to the government has been a compelling argument in both cases.
Already lotteries have been allowed legitimacy despite the fact that It essentially entails a certain extent of gambling. Though both betting and gambling are primarily wagers, there is a slight difference between the two terms. All the three are generally taken to mean the same thing, although technically they are all different. The advent of online gaming has further diluted the separation.
Online gaming has taken the internet by storm, with card games, arcade and puzzle games, online versions of sports becoming hugely popular. In fact, online rummy has become one of the biggest addictions for Indians, just as cryptocurrencies had become like second nature for the millennials. This naturally presents a scenario for a like to like comparison between the two.
The courts have made a distinction between gambling and games involving skills, which again builds up a case for legitimising some forms of gambling as legitimate sports. The main test to determine whether a game amounts to gambling or not is the play of skills or chance in them. Games of chance are those where the winner is predominantly determined by luck; the result of the game is entirely uncertain and a person is unable to influence such result by his mental or physical skill. The person indulging in game of chance wins or loses by sheer luck and skill has no role to play. On the other hand, the result of a game of skill is influenced by the expertise, knowledge and training of the player. In India, games of chance fall under the category of gambling, and are generally prohibited, while games of skill, falling outside the ambit of gambling are usually exempted.
Even from the constitutional point of view, these activities are not without certain legitimacy as the framers of the Constitution were cognizant of the fact that it would be nearly impossible to completely prohibit these. This difficulty has increased manifold with the advent of Internet Technology. There are no specific central laws governing online gambling in India. Currently, gambling and betting come under the State List, empowering the states to regulate these activities as per the socio economic conditions of that particular state. Sikkim and Nagaland are the only States that expressly permit online gambling and accordingly, most of the gaming sites claim legitimacy under licence from one of the two.
Increasingly, there are calls for legalising gambling for entertainment purposes, with a strong argument that if it is not possible to prevent these activities, they should be legalised and regulated. This is the same argument that finally clinched the deal in favour of taxing cryptocurrencies. Cryptos had become a reality, which would not go away by the authorities preferring to look the other way.
Further lending credence to the argument is that gambling should be regulated like the stock market, for some degree of skill is involved in both. Decriminalisation of these activities could prevent people from being subjected to loan-sharks as well as help preserve the integrity of the ‘game'. As the illegal and unregulated betting industry is thriving and it is extremely difficult to curbit, the supported of legal betting say legitimising and regulation will, on one hand, generate huge revenues for the states and on the other hand, save people from exploitation.
Gaming enthusiasts are even lobbying for a lower sin tax for betting as anything over 20 per cent of gross gaming revenue (GGR) will have a negative influence on the pay-out level of the licensed operators. Therefore, they are building up a case for a moderate rate of tax. It is of no help for them that the government has imposed a hefty 30 percent tax on the transfer of crypto assets.
