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 press reporter

It is the last over of the cricket match, with India needing 17 go to win against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged guy is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right hand.

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

Five minutes previously his cash was on Australia, today as the Indian batsman gets prepared to deal with the last over he's changed his mind.

"I think India is winning, make the modification," he tells his bookie on the phone.

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

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

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

'Black money'

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

Without any legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

Most of these transactions involve so-called "black money", which is cash not stated to the taxman.

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

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

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend changes 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 emerged.

Two franchises have been banned for two years after some gamers and team officials were found guilty of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised wagering will generate tax incomes for the exchequer that might total up to $2bn a year.

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

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

It would likewise open a big company opportunity for certified bookmakers and international online sports betting business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with gambling more transparent.

"If you work alongside wagering companies, you will have a really reliable method of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookmaker will have to be reasonable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be prohibited sports betting because (some) individuals would not desire to leave an audit trail by entering the white market," states Mr Oborne.

He includes that people who use unaccounted money to place big bets will never bet lawfully.

Approval question

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

"Despite the fact that many individuals are involved in some sort of sports betting - it's still a controversial concern for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will need to also 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 negative about this coming true anytime quickly."

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