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 versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has made more than 10 contact the last 30 minutes - not to go over the match however to keep revising his bet.

Five minutes previously his cash was on Australia, now as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

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

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

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

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

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

'Black cash'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can wager on anything associated 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 money not declared to the taxman.

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law forbiding internet sports betting, there is nothing comparable here.

And offshore wagering business are using this loophole to lure Indians. Although there are no online sports betting operators based out of India, a lot individuals have actually signed up 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 regardless of this, it is "offline gaming", done through telephone call which dominate the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the country's favourite 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 sports betting scandal came to light.

Two franchises have been prohibited for 2 years after some players and team officials were condemned of fixing parts of the match at the request of bookmakers.

The panel likewise argues that legalised wagering will bring in tax incomes for the exchequer that could amount to $2bn a year.

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

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

It would also open a substantial company opportunity for certified bookies and international online sports betting business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions included in sports betting more transparent.

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

But lots of likewise think, that the taxes imposed on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) individuals would not want to leave an audit path by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted cash to position huge bets will never bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a difficult idea to sell.

"Even however lots of people are associated with some sort of sports betting - it's still a questionable concern for numerous," states our unnamed punter.

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

"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 actually been endorsed by an official panel for the very first time, at least an argument has actually ignited around a subject - which previously was thought about a taboo.