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 press reporter

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

In his two-bedroom home situated in central Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

He has actually made more than 10 contact the last 30 minutes - not to go over the match however to keep modifying his bet.

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

"I think India is winning, make the change," he informs his bookie on the phone.

And a few minutes later his forecast comes real, as India wins the match in a nail-biting surface.

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

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

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, unlawful sports betting distributes flourish in the country.

'Black cash'

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

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

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

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

And overseas sports betting business are using this loophole to entice Indians. Although there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas firms.

"Legally you can escape [with this], as the law is uncertain for online gambling," states Mumbai- based attorney HP Ranina.

But regardless of this, it is "offline sports betting", done through telephone call which control the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, saying it would help secure down on corruption in the country's favourite sport.

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

Two franchises have been prohibited for two years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax revenues for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a relocation in the right direction.

"I don't mind paying some money out my earnings, as long as I can gamble openly," says our cricket bettor.

It would also open a substantial organization chance for certified bookies and global online wagering business to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work alongside sports betting companies, you will have a very effective method of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise believe, that the taxes levied on the bettor and the bookie will need to be reasonable to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) individuals wouldn't desire to leave an audit path by going into the white market," says Mr Oborne.

He includes that people who use unaccounted money to place big bets will never ever gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a tough idea to sell.

"Despite the fact that many individuals are included in some sort of sports betting - it's still a controversial problem for many," says our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their area.

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a reality anytime soon."

Yet with the idea having been backed by an official panel for the very first time, a minimum of a debate has fired up around a subject - which till now was considered a taboo.