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 go to win versus Australia.

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

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

Five minutes previously his cash was on Australia, today as the Indian batsman prepares to deal with the last over he's altered his mind.

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

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

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

For more than 3 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.

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

'Black money'

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

With no legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

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

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

But despite this, it is "offline gaming", done through call which control the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the functioning of India's cricket regulative 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 been prohibited for 2 years after some gamers and team authorities were found guilty of repairing parts of the match at the request of bookmakers.

The panel also argues that legalised wagering will bring in tax earnings for the exchequer that could total up to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the best instructions.

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

It would also open a huge organization opportunity for licensed bookmakers and global online wagering business to establish operations in India.

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

"If you work together with sports betting business, you will have a very efficient approach of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be prohibited wagering because (some) individuals wouldn't wish to leave an audit trail by entering the white market," states Mr Oborne.

He includes that people who utilize unaccounted money to position huge bets will never ever gamble legally.

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 difficult idea to offer.

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

And considered 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 difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

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