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 needing 17 runs to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged guy is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his ideal hand.

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

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

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

And a few minutes later on his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

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

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful sports betting syndicates prosper in the country.

'Black cash'

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

With no legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any type of sports betting in India, however unlike in the US which has a law prohibiting internet gaming, there is absolutely nothing similar here.

And overseas wagering business are utilizing this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas companies.

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

But in spite of this, it is "offline gambling", done through phone calls 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 assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest 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 wagering scandal emerged.

Two franchises have actually been prohibited for two years after some gamers and team authorities were found guilty of fixing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised wagering will generate tax revenues for the exchequer that might total up to $2bn a year.

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

"I don't mind paying some cash out my profits, as long as I can gamble openly," says our cricket bettor.

It would also open a substantial business chance for certified 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 lots of, by assisting make transactions associated with sports betting more transparent.

"If you work along with wagering business, you will have an extremely reliable technique of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookie will have to be affordable to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited sports betting since (some) individuals wouldn't wish to leave an audit path by going into the white market," states Mr Oborne.

He adds that people who use unaccounted cash to put big bets will never ever bet lawfully.

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 concept to sell.

"Despite the fact that lots of people are included in some sort of sports betting - it's still a controversial problem for many," states our unnamed punter.

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

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

Yet with the idea having been backed by an official panel for the first time, a minimum of a debate has actually ignited around a topic - which up until now was considered a taboo.