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 needing 17 runs to win versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is watching the game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has actually made more than 10 employ the last 30 minutes - not to discuss the match however to keep revising his bet.

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

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

And a few minutes later on his forecast 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 years he's been wagering on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, prohibited wagering distributes grow in the nation.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's illegal 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 bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these deals involve 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 restricting internet sports betting, there is nothing comparable here.

And offshore sports betting business are utilizing this loophole to tempt Indians. Although there are no online sports betting 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 ambiguous for online gaming," says Mumbai- based legal representative HP Ranina.

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

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the nation's favourite sport.

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

Two franchises have actually been prohibited for two years after some gamers and group officials were discovered guilty of fixing parts of the match at the request of bookmakers.

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

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

"I do not mind paying some money out my profits, as long as I can gamble openly," states our cricket bettor.

It would likewise open a huge company chance for licensed bookmakers and global online sports betting business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals involved in gambling more transparent.

"If you work along with wagering companies, you will have an extremely reliable technique of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise think, that the taxes levied on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) people would not desire to leave an audit trail by entering the white market," says Mr Oborne.

He includes that people who use unaccounted money to position huge bets will never bet legally.

Approval question

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

"Even however lots of people are involved in some sort of sports betting - it's still a questionable concern for lots of," states our unnamed punter.

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

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the concept having actually been endorsed by a main panel for the very first time, at least a debate has ignited around a topic - which until now was thought about a taboo.