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 go to win against Australia.

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

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

Five minutes previously his cash was on Australia, and 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 modification," he tells his bookmaker on the phone.

And a couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he states with a childlike 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 unlawful in India.

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

'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 gambling cash is directed towards cricket.

Without any legal avenue, punters position 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 private run scorer.

The majority of these deals involve so-called "black money", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any kind of gambling in India, however unlike in the US which has a law restricting internet gambling, there is nothing similar here.

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

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

But in spite of this, it is "offline gaming", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to recommend modifications in the functioning 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 prohibited for 2 years after some gamers and group officials were found guilty of fixing parts of the match at the request of bookies.

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

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

"I do not mind paying some cash out my revenues, as long as I can bet publicly," says our cricket gambler.

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

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by helping make transactions involved in gambling more transparent.

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

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

However, there are constraints.

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

He includes that people who utilize unaccounted money to put huge bets will never bet lawfully.

Approval concern

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

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

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

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the idea having been backed by a main panel for the first time, a minimum of a dispute has fired up around a topic - which previously was thought about a taboo.