Howzat? The clamour to legalise sports betting betting 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 needing 17 runs to win versus Australia.

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

He has actually made more than 10 employ the last thirty minutes - not to talk about the match but to keep revising his bet.

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

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

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

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

For more than 3 decades he's been banking on cricket matches. We can't reveal 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, prohibited wagering distributes thrive in the nation.

'Black money'

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

Without any legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

Most of these deals include so-called "black cash", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law restricting web gambling, there is absolutely nothing similar here.

And offshore wagering business are utilizing this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore companies.

"Legally you can escape [with this], as the law is unclear for online gaming," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline gaming", done through telephone call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have actually been prohibited for two years after some players and team officials were condemned of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised sports betting will bring in tax profits for the exchequer that could amount to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a relocation in the right instructions.

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," states our cricket gambler.

It would also open a big business opportunity for certified bookies and international online sports betting companies to set up operations in India.

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

"If you work along with sports betting companies, you will have a really effective approach of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are constraints.

"Definitely there will be illegal wagering due to the fact that (some) people wouldn't wish to leave an audit trail by entering the white market," states Mr Oborne.

He includes that people who use unaccounted cash to place huge bets will never gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a hard idea to sell.

"Although many individuals are associated with some sort of sports betting - it's still a questionable issue for lots of," says our unnamed punter.

And given that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting in their area.

"The process 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 quickly."

Yet with the idea having actually been endorsed by an official panel for the very first time, a minimum of a dispute has actually ignited around a subject - which previously was considered a taboo.