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 go to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged guy is enjoying the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

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

Five minutes earlier his money was on Australia, today as the Indian batsman gets ready to face the last over he's changed his mind.

"I believe India is winning, make the change," he tells his bookie on the phone.

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

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

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting distributes prosper in the nation.

'Black money'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

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

And overseas wagering business are using this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot people have actually registered accounts with overseas companies.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend changes 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 prohibited for 2 years after some players and team authorities were found guilty of fixing parts of the match at the behest of bookies.

The panel likewise argues that legalised sports betting will generate tax earnings for the exchequer that could amount to $2bn a year.

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

"I do not mind paying some cash out my revenues, as long as I can bet openly," says our cricket bettor.

It would also open a substantial business opportunity for licensed bookmakers and international online sports betting business to set up operations in India.

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

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

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

However, there are restrictions.

"Definitely there will be unlawful sports betting because (some) individuals wouldn't want to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who use unaccounted cash to position huge bets will never bet lawfully.

Approval question

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

"Despite the fact that many individuals are involved in some sort of gambling - it's still a controversial problem for many," states our unnamed punter.

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

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

Yet with the idea having actually been endorsed by an official panel for the very first time, at least an argument has actually ignited around a subject - which previously was thought about a taboo.