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 versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged male is seeing the video game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, and now as the Indian batsman gets all set to deal with the last over he's changed his mind.

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

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

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

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

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

'Black cash'

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

Without any legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And overseas wagering companies are utilizing this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore companies.

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

But in spite of this, it is "offline sports betting", done through phone calls which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the performance of India's cricket regulatory 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 two years after some gamers and group authorities were condemned of repairing parts of the match at the wish of bookies.

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

Even gamblers feel that legalising sports betting is a move in the ideal direction.

"I don't mind paying some money out my profits, as long as I can gamble publicly," states our cricket bettor.

It would likewise open a huge service opportunity for certified bookies and global online wagering business to set up operations in India.

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

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

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

However, there are limitations.

"Definitely there will be unlawful wagering because (some) individuals would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that people who utilize unaccounted cash to position huge bets will never gamble lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a hard concept to sell.

"Even though many individuals are involved in some sort of gaming - it's still a questionable problem for numerous," says our unnamed punter.

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

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

Yet with the concept having been endorsed by an official panel for the first time, at least a debate has sparked around a topic - which previously was thought about a taboo.