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 requiring 17 runs to win against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right hand.

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 cash was on Australia, now as the Indian batsman prepares to face 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 his forecast becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he states 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.

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

'Black cash'

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

With no legal opportunity, punters position 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 highest specific run scorer.

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

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

And offshore wagering business are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, stating it would assist secure down on corruption in the nation's preferred 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 sports betting scandal came to light.

Two franchises have actually been banned for 2 years after some gamers and group officials were discovered guilty of repairing parts of the match at the behest of bookies.

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

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

"I do not mind paying some money out my profits, as long as I can bet publicly," says our cricket gambler.

It would likewise open a huge organization chance for licensed bookies and international online wagering business to set up operations in India.

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

"If you work along with sports betting companies, you will have a very efficient technique of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous also believe, that the taxes levied on the gambler and the bookie will have to be sensible to make it appealing enough for them to gamble legally.

However, there are constraints.

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

He adds that people who use unaccounted money to put huge bets will never ever bet legally.

Approval question

For sports betting gambling 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 lots of people are involved in some sort of gaming - it's still a controversial problem for lots of," says 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 negative about this becoming a truth anytime quickly."

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