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 versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is seeing the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

He has made more than 10 hire the last 30 minutes - not to go over the match but to keep revising his bet.

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

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

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

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

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

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

'Black cash'

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

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

Most of these deals involve so-called "black cash", which is cash 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 restricting internet gaming, there is nothing similar here.

And overseas wagering companies are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas companies.

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

But regardless of this, it is "offline gambling", done through call which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend changes 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 emerged.

Two franchises have been prohibited for 2 years after some players and team officials were condemned of fixing parts of the match at the behest of bookies.

The panel also argues that legalised wagering will bring in tax profits for the exchequer that could amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a relocation in the right 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 big service chance for licensed bookmakers and worldwide online sports betting companies to set up operations in India.

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

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

But lots of likewise think, that the taxes imposed on the gambler and the bookie will have to be reasonable to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be illegal wagering due to the fact that (some) individuals wouldn't desire to leave an audit path by going into the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to put big bets will never bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a difficult concept to offer.

"Even though many individuals are associated with some sort of gambling - it's still a controversial concern for numerous," says our unnamed punter.

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

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this becoming a reality anytime quickly."

Yet with the idea having actually been backed by an official panel for the very first time, a minimum of an argument has actually ignited around a topic - which until now was considered a taboo.