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 home situated in central Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares 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 his prediction comes real, as India wins the match in a nail-biting surface.

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

For more than 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not permitted in India. Despite that, illegal wagering distributes flourish in the nation.

'Black cash'

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 cash is directed towards cricket.

Without any legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest specific run scorer.

Most of these deals involve so-called "black money", which is money not stated 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 internet gaming, there is absolutely nothing similar here.

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

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

But in spite of this, it is "offline sports betting", done through call which dominate the market.

Calls for legalisation

The clamour to legalise wagering 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 established 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 sports betting scandal came to light.

Two franchises have been banned for 2 years after some players and group authorities were condemned of repairing parts of the match at the behest of bookies.

The panel likewise argues that legalised sports betting will generate tax incomes for the exchequer that could amount to $2bn a year.

Even gamblers feel that legalising sports betting is a relocation in the right direction.

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

It would also open a big service opportunity for licensed bookies and global online wagering companies to set up operations in India.

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

"If you work along with wagering companies, you will have a very reliable method of marking out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are restrictions.

"Definitely there will be illegal sports betting due to the fact that (some) individuals wouldn't wish to leave an audit trail by entering the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to position big bets will never ever bet legally.

Approval concern

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

"Even however many individuals are involved in some sort of gambling - it's still a questionable concern for numerous," states our unnamed punter.

And offered that India has a federal structural - each state will have to likewise 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 coming true anytime quickly."

Yet with the concept having actually been backed by a main panel for the very first time, at least an argument has actually sparked around a topic - which previously was considered a taboo.