Howzat? The clamour to legalise sports betting 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 against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged guy is seeing the game, nervously. He's resting 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 talk about the match but to keep modifying his bet.

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

"I believe India is winning, make the change," 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 childish glee.

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

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

'Black cash'

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

Without any legal avenue, punters put bets utilizing 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 deals include so-called "black cash", which is money not declared 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 web gaming, there is absolutely nothing comparable here.

And overseas sports betting companies are using this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance 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 two years after some gamers and group officials were condemned of repairing parts of the match at the request of bookies.

The panel also argues that legalised sports betting will generate tax profits for the exchequer that might amount to $2bn a year.

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

"I do not mind paying some money out my revenues, as long as I can gamble publicly," says our cricket bettor.

It would likewise open a substantial company opportunity for licensed bookies and global online sports betting companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by helping make deals included in sports betting more transparent.

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

But lots of likewise believe, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) people wouldn't wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to place huge bets will never ever bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a tough 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 in their territory.

"The process 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 been backed by a main panel for the very first time, a minimum of an argument has actually ignited around a subject - which previously was considered a taboo.