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 reporter

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

In his two-bedroom house situated in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

He has made more than 10 contact the last thirty minutes - not to talk about the match however to keep modifying his bet.

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

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

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

"I have made $200 today," he states with a childish glee.

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is illegal in India.

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

'Black cash'

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

With no legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

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

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

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

But regardless of this, it is "offline sports betting", done through phone calls which dominate the market.

Calls for legalisation

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

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

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

The panel also 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 wagering is a relocation in the best instructions.

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

It would also open a big service opportunity for licensed bookmakers and international online wagering companies to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by helping make transactions included in sports betting more transparent.

"If you work together with wagering business, you will have a really reliable method of marking out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookie will need to be reasonable to make it attractive enough for them to gamble legally.

However, there are constraints.

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

He adds that people who utilize unaccounted money to place huge bets will never bet legally.

Approval concern

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

"Although many individuals are associated with some sort of sports betting - it's still a controversial issue for numerous," states our unnamed punter.

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

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

Yet with the concept having been backed by an official panel for the very first time, a minimum of an argument has fired up around a topic - which till now was considered a taboo.