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 reporter

It is the last over of the cricket match, with India requiring 17 runs to win against 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 cellphone glued to his right-hand man.

He has made more than 10 calls in the last 30 minutes - not to discuss the match however to keep revising his bet.

Five minutes previously his money was on Australia, and now as the Indian batsman prepares to deal with the last over he's altered his mind.

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

And a few minutes later his prediction comes true, as India wins the match in a nail-biting surface.

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

For more than 3 years he's been sports betting on cricket matches. We can't expose 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, prohibited wagering distributes flourish in the country.

'Black cash'

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

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

Most of these deals involve so-called "black money", which is money 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 gaming, there is absolutely nothing similar here.

And overseas sports betting companies are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas companies.

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

But regardless of 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, saying it would assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend changes in the functioning 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 actually been banned for two years after some players and group officials were condemned of repairing parts of the match at the request of bookmakers.

The panel likewise argues that legalised wagering will bring in tax revenues for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the best direction.

"I do not mind paying some cash out my earnings, as long as I can gamble openly," states our cricket bettor.

It would likewise open a huge service chance for licensed bookmakers and global online sports betting business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

"If you work alongside wagering business, you will have a very reliable method of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise believe, that the taxes levied on the gambler and the bookie will need to be affordable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be unlawful wagering due to the fact that (some) people wouldn't wish to leave an audit path by going into the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to put huge bets will never bet lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard idea to offer.

"Although numerous individuals are involved in some sort of sports betting - it's still a questionable concern for numerous," says our unnamed punter.

And given that India has a federal structural - each state will need 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 ending up being a truth anytime quickly."

Yet with the concept having been backed by a main panel for the very first time, at least a dispute has ignited around a subject - which previously was thought about a taboo.