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 runs to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is watching the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his best hand.

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

Five minutes previously 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 bookie on the phone.

And a few minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

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

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

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

'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 gambling money is directed towards cricket.

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

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

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law restricting web gaming, there is absolutely nothing comparable here.

And offshore sports betting companies are using 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 offshore companies.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the functioning 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 actually been prohibited for 2 years after some players and group officials were condemned of repairing parts of the match at the request of bookmakers.

The panel also argues that legalised sports betting will bring in tax revenues for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting 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 substantial business opportunity for certified bookies and international online sports betting business to set up operations in India.

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

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

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

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) individuals wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted cash to put huge bets will never bet lawfully.

Approval concern

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

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a questionable issue for lots of," states our unnamed punter.

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

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the idea having been endorsed by a main panel for the first time, at least a dispute has actually sparked around a subject - which until now was thought about a taboo.