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 requiring 17 go to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is viewing the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

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 money was on Australia, now as the Indian batsman prepares to deal with the last over he's changed his mind.

"I believe India is winning, make the modification," he tells his bookmaker on the phone.

And a couple of minutes later on his forecast comes to life, 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 years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

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

'Black money'

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

With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions include so-called "black cash", which is cash not declared to the taxman.

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

And offshore wagering companies are utilizing this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas firms.

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

But despite this, it is "offline gambling", done through phone calls which control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 came to light.

Two franchises have been banned for two years after some players and group authorities were discovered guilty of repairing parts of the match at the wish of bookies.

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

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

"I do not mind paying some money out my profits, as long as I can gamble publicly," says our cricket gambler.

It would also open a substantial company opportunity for licensed bookies and international online wagering companies to set up operations in India.

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

"If you work alongside sports betting business, you will have a really reliable technique of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookie will have to be affordable to make it appealing enough for them to bet legally.

However, there are restrictions.

"Definitely there will be prohibited wagering because (some) individuals wouldn't wish to leave an audit trail by getting in the white market," states Mr Oborne.

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

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a difficult idea to offer.

"Even however many individuals are included in some sort of gambling - it's still a controversial problem for many," states our unnamed punter.

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

"The procedure is so long and challenging 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 a main panel for the first time, at least an argument has ignited around a topic - which up until now was considered a taboo.