Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

Share

close panel

Share page

Copy link

About sharing

By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India needing 17 go to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has actually made more than 10 contact the last 30 minutes - not to talk about the match but to keep modifying his bet.

Five minutes previously his money was on Australia, today as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

"I think India is winning, make the modification," he tells his bookie on the phone.

And a few minutes later on his prediction comes true, as India wins the match in a nail-biting surface.

"I have made $200 today," he states with a childish glee.

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering syndicates thrive in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering market deserves some $150bn a year. And much of that sports betting money is directed towards cricket.

With no legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these deals include so-called "black money", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law restricting internet sports betting, there is absolutely nothing similar here.

And overseas sports betting business are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with overseas firms.

"Legally you can get away [with this], as the law is unclear for online sports betting," states Mumbai- based lawyer HP Ranina.

But despite this, it is "offline sports betting", done through call which control the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have been prohibited for 2 years after some gamers and team officials were found guilty of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised wagering will bring in tax incomes for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the best instructions.

"I don't mind paying some money out my revenues, as long as I can bet publicly," says our cricket bettor.

It would also open a big organization chance for certified bookies and international online sports betting companies to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue lots of, by assisting make transactions associated with gambling more transparent.

"If you work together with sports betting business, you will have a very efficient method of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of also think, that the taxes imposed on the gambler and the bookmaker will have to be reasonable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal wagering because (some) individuals would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to place huge bets will never gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a difficult idea to offer.

"Despite the fact that lots of people are included in some sort of gambling - it's still a controversial concern for numerous," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their territory.

"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime soon."

Yet with the idea having been backed by a main panel for the very first time, at least an argument has actually ignited around a topic - which previously was considered a taboo.