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Regulation Doesn’t Make Gambling Spring into Existence, only Makes it Safer
Young Bites. Dated: 6/25/2022 1:25:06 PM
Meghalaya’s Liberalization of Gaming Met with Apocalyptic Alerts
Within less than a year,
Meghalaya shifted from an almost total prohibition to India's most liberal
legislation over gaming, gambling, and sports betting in an attempt to boost
tourism and help the state's economy. The move towards gaming regulation,
however, was not well appreciated by everyone, as some organizations voiced
their concerns
painting an apocalyptic
picture of
what lies ahead.The Meghalaya United
Christian Forum (MUCF) allerted that the state's decision to regulate offline
and
online betting,
games of skill and games of chance will bring doom to the lives of the
vulnerable young men and women of all beliefs and communities living in the
state and will have far-reaching consequences for their families."Online gambling and casinos
might generate a lot of revenue for the government but the bigger question is
whether people are willing to pay the price and are they ready to bear the
repercussions of such an endeavor on the society at large," stated MUCF
Secretary Synsharlang Kharshiing.
"The leaders and the
government functionaries of the state should deeply introspect before jumping
head on with excitement without considering the destruction it may cause to the
present and future generations," he added.
The Existence of Gambling and Betting Does Not Depend on Regulations or Bans
Mr. Kharshiing's statement
that gaming regulation may bring "destruction" to whole generations of citizens
sounds weird as it implies that
cricket satta
and other forms of gambling didn't exist before they were legalized, and it is
the state's new laws that created them.
Widely available data shows
that this is as far away from the truth as possible. Moreover, as observed in a
recent study on global
gambling regulations and licensing regimes
by Esse N Videri, jurisdictions lacking regulation over the sector are "more
vulnerable to illegal operations, both within and offshore."
The report points out that,
"this is the case of Brazil, India, and large parts of South-East Asia, for
example." India, in particular, marks the highest increase of 35 percent in the
number of games played each month by the average user during the peak 2020 month
of the Covid-19 pandemic compared to 2019 average monthly data.
Russia follows with a 30
percent gaming spike, Indonesia is third, registering a 26 percent increase, and
Brazil is in fourth position with 23 percent. South Korea and France are last
with 5 and 3 percent respectively.
India, on the other hand, is
ranked in the last 20th position in a 2021 assessment of major gaming
jurisdictions around the world by the Brussels-based European Gaming and Betting
Association (EGBA), scoring only 9 out of 100 possible points. The UK receives
the highest mark of 91 points, followed by Malta with 88 points, while Argentina
in the 18th position comes up with 61 points, way above India's result.
The EGBA ranking is based on
scores along five criteria including ‘Regulation and Licensing' - measuring the
strength and the user protection provided by legislation among other things,
‘Taxation', ‘Product', ‘Integrity' - involving a score on legal requirements to
report suspicious betting activities and international cooperation, and
‘Advertising'.
India's low score of 9 points
signals a Zero percent channeling of betting activities and turnovers to
legitimate channels. "Whilst betting is widespread across India it is mainly
prohibited and therefore unlicensed and unregulated. Player protection and
market oversight is therefore absent, as are fiscal returns. The unregulated
market and related criminality will continue to flourish," the EGBA assessment
of the Indian market concludes, as quoted in the Esse N Videri report.
Regulation is the Way to a Safer Gaming Environment
Contrary to MUCF Secretary
Kharshiing's misguided alert, it is regulation and licensing over gaming and
betting that can effectively lower the "destruction" of families and young lives
in India, and in the state of Meghalaya in particular.
Besides bringing tax and
license fee revenues to the exchequer and creating numerous job opportunities,
directly and in related industries such as the tourism and food catering
sectors, gaming regulation lowers criminal activity. Such legalisation moves
financial flows away from criminal hands and enhances anti-money laundering
mechanisms. Sports integrity is also raised, as better betting traceability
leads to easier curbing of match-fixing practices.
Most importantly, gambling
and betting regulation introduces mandatory customer protection and responsible
gaming mechanisms, including a variety of measures that limit any societal
"damage" from gambling.
Responsible gaming mechanisms
typically include spending limits, barriers to gamling on credit, restrictions
on advertising, bonuses and loyalty programs, self-exclusion systems, AI-based
behavior monitoring tools, requirements for providing easy access to
professional mental health support, and many more.