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 versus Australia.

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

He has made more than 10 employ the last 30 minutes - not to discuss the match but to keep revising his bet.

Five minutes earlier his cash was on Australia, now as the Indian batsman prepares 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 his forecast comes real, 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 3 years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates flourish in the country.

'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 sports betting cash is directed towards cricket.

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

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

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law forbiding internet gaming, there is nothing comparable here.

And offshore sports betting business are utilizing 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 companies.

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

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

Require legalisation

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

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

Two franchises have actually been prohibited for 2 years after some players and group authorities were discovered guilty of repairing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax incomes for the exchequer that might amount 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 publicly," says our cricket bettor.

It would likewise open a huge company opportunity for certified bookies and worldwide online wagering companies to establish operations in India.

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

"If you work alongside wagering business, you will have a very effective method of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise think, that the taxes imposed on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting since (some) individuals wouldn't desire to leave an audit trail by entering the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to place big bets will never gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard concept to offer.

"Even though many individuals are involved in some sort of gaming - it's still a questionable issue for numerous," says our unnamed punter.

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

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a truth anytime quickly."

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