The Indian government is considering legalising the country's underground gambling circuit following the spot-fixing scandal to hit the Pakistan cricket team during its tour of England.

An unnamed sports ministry source has said the government will re-examine the issue following a recommendation from a trial court in New Delhi, which last week suggested money from illegal betting was being used to fund terrorism and drug trafficking.

Gambling in India is illegal except for horse racing and at a number of casinos in Goa and Sikkim states.

The unnamed official said: "The aim is to ascertain whether legalised betting can exist in India without the stigma attached to it now. So, we are looking at the pros and cons with great care."