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 requiring 17 go to win versus Australia.

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

He has made more than 10 calls in the last thirty minutes - not to go over the match but to keep revising his bet.

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

"I think India is winning, make the modification," 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 finish.

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

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates thrive in the country.

'Black money'

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

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

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

The 1867 Public Gambling Act bars any sort of gaming in India, however unlike in the US which has a law prohibiting web gaming, there is nothing similar here.

And offshore sports betting business are utilizing this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with offshore companies.

"Legally you can get away [with this], as the law is uncertain for online gaming," says Mumbai- based lawyer HP Ranina.

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

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, 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 wagering scandal came to light.

Two franchises have been banned for 2 years after some players and team officials were condemned of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised sports betting will generate tax revenues for the exchequer that could total up to $2bn a year.

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

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

It would likewise open a big service chance for certified bookmakers and international online wagering business to set up operations in India.

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

"If you work together with sports betting companies, you will have an extremely reliable technique of stamping out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.

But many also believe, that the taxes imposed on the bettor and the bookie will have to be sensible to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited wagering because (some) people would not desire to leave an audit trail by entering the white market," says Mr Oborne.

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

Approval concern

For sports betting to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a tough 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 considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling in their area.

"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 reality anytime quickly."

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