The three-member committee, headed by former Chief Justice of India R M Lodha, said though betting is a general malaise indulged in by different sections of society, it can be dealt with by providing a legal framework.
"There is a fundamental difference between betting and match/spot-fixing. The latter interferes with the integrity of the game and attempts to change the course of the match. It is tampering the game by the cricket players to benefit a few. On the other hand, betting is a general malaise indulged by different sections of society...
"The only way to deal with it is by making it a criminal offence punishable by law. The Committee recommends appropriate amendments by the legislature," the panel, also comprising justices R V Raveendran and Ashok Bhan, said in its 159-page report.
Detailing the safeguards, the report said that regulatory
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watchdogs would be necessary to ensure that betting houses as well as those transacting are strictly monitored, failing which the registrations would be susceptible to cancellation.
"The players, administrators and others closely associated with the sport would be required to furnish the details of their incomes and assets for the sake of transparency.
"Strict penal sanctions would have to be imposed on those transgressing the license and other requirements," it said.
Regarding betting, the report further said it had received suggestions that it would serve both the game and economy if it were legalized as has been done in the United Kingdom.
"It cannot be overlooked that the worldwide legal sports betting market is worth over 400 billion dollars. However, with the interest of cricket being foremost in our minds, it would always be necessary to protect and invoke transparency from those involved in the game," it said.
The panel observed that financial insecurity, short professional career and huge disparity in the contract money paid to different classes of players are some of the factors which tempt them towards malpractices.
It recommended that BCCI should coordinate with the State machinery to create a dedicated special investigation wing in the police to act whenever there are complaints and also to ensure that such events do not occur.
"Attention should be bestowed by BCCI to give education about ethics and financial management to youngsters and to secure the post-cricket life of all players.
"Experience has shown that when a betting or match/ spot- fixing incident occurs, BCCI is ill-prepared to deal with the same," it said.
Apart from recommending legalisation of betting, the panel also suggested sweeping reforms for BCCI, suggesting a bar on ministers from occupying positions, putting a cap on the age and tenure of the office-bearers.