July 31, 2018
| On 3 years ago

Indian Law Commission backs Cryptocurrencies to be used in gambling sector

By Koustav Shaw @@GodKoustav

Gambling in India:

In the 276th report issued by the Law Commission of India titled, ‘Legal Framework: Gambling and Sports Betting including Cricket in India,’ stated that government is aware of the black world of gambling and the loss of tax revenues to the country. In order to bottle-neck, corruption from spreading everywhere Law Commission of India had already favoured that betting on cricket matches in India should be legalized. Now, taking a step further, the commission expressed that gambling and betting are two sides of one coin and it is high time that they put an end to these unlawful activities or at least find a way out to curb it.

India has a very strange approach to gambling and sports betting since every state have their own opinion of it even poker and casino games are not allowed everywhere in the country let alone online gambling. In most parts of the country online gambling is prohibited by the local government to prevent citizens from that locality to get involved in online gambling but people are doing it anyway. Knowing that online gambling cannot be stopped but could be used more effectively for the state’s purpose, Sikkim has legalized online gambling setting an example for other states to follow.

Could cryptocurrency be the solution?

However, one of the surprising facts of this report is that ILC (Indian Law Commission) has backed cryptocurrencies to be implemented in the gambling sector so that every transaction is tracked and recorded. The gambling sector in India is starting to bloom and with a population of over 1.3 billion, it is certain that the world of gambling would see a huge potential in India. Sports betting have already been legalized for horse racing with cricket in the pipeline; the ILC firmly believes that by legalizing betting in India would help in getting back the significant tax revenue that is lost.

In the report published by Law Commission of India, which is responsible for framing legal reform in the country,  discussed that ‘strait-jacket prohibition’ could bring in more transparency in the gambling sector. Only widespread legalization is the solution to end black economy in the country and for that the introduction of a cashless system likes that of cryptocurrencies which requires online verification and details of the users. Not only that, the electronic payment system will also have to comply with anti-money laundering laws. Though the use of cryptocurrencies have been banned in India but a hearing which was held on June 20th presented this idea of legalizing sports betting everywhere and awaits its verdict in September. There’s a big possibility that the ban of cryptocurrency would be lifted for the expansion of legalizing gambling in India.

Koustav Shaw @@GodKoustav

I always hate talking about myself because it feels weird to talk about myself honestly. Ever think that it's weird? No? Just me? My bad. Always hungry, always sleepy and in between always writing. Hope you won't mind!

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