"If law enforcement agencies feel it is right, betting in sports should be legalised," Dravid said at a special session on ethics and integrity in sports, organised by the Central Bureau of Investigation (CBI).
CBI chief Ranjit Sinha supported his view.
"If we can have lottery in states, casinos, why can't betting be legal," said Sinha.
Four issues like age fraud, doping, deliberate under-performance and player involvement in the betting industry, require legal intervention in Indian sports, said Dravid.
"I believe that it is now time for legal reform and the turn of national and state legislature and the criminal law administration to intervene," Dravid said.
Noting that there was pressure on younger players who suffered from insecurity, Dravid said this leads to temptations to cut corners, use unfair means and make a quick buck.
"I am not unaware of the pressure and influences on the young athletes. There is intense pressure to perform and succeed. Insecurity is a prominent feature of any sporting career," he said.
"In this scenario there are temptations to cut corners, use unfair means and make a quick buck," he said.
The challenge of doping has plagued every sport worldwide and India is no exception, he noted.
Failure to address these challenges, he said, not only risks a serious threat to the all-round development of confidence in sport but will enable entrenchment of new norms in the subculture of sports which are harder to change, said Dravid.
Self regulation in sports has not worked much, he agreed.
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