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 house located in central Mumbai, a middle-aged man is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his ideal hand.

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

Five minutes earlier his money was on Australia, now as the Indian batsman gets prepared to deal with the last over he's altered his mind.

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

And a couple of minutes later on his forecast comes true, as India wins the match in a nail-biting surface.

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

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

Besides horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful wagering syndicates thrive 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 opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest specific 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 type of gambling in India, but unlike in the US which has a law restricting web gaming, there is absolutely nothing comparable here.

And overseas wagering business are using this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas firms.

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

But regardless of this, it is "offline gambling", done through telephone call which control the market.

Require legalisation

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

Two franchises have been prohibited for 2 years after some players and group authorities were condemned of fixing parts of the match at the wish of bookmakers.

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

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

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

It would also open a huge business chance for licensed bookmakers and international online wagering companies to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by helping make transactions involved in gambling more transparent.

"If you work alongside wagering companies, you will have an extremely effective technique of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also believe, that the taxes levied on the gambler and the bookie will need to be affordable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal wagering due to the fact that (some) people would not wish to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to position big bets will never gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a difficult concept to offer.

"Even though lots of people are involved in some sort of gambling - it's still a controversial problem for numerous," says our unnamed punter.

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

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

Yet with the idea having been endorsed by an official panel for the very first time, at least a dispute has actually ignited around a topic - which up until now was thought about a taboo.