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 needing 17 go to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is viewing the game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

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

Five minutes earlier his money was on Australia, however 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 forecast comes to life, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he states 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 prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting syndicates flourish in the nation.

'Black money'

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.

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these transactions involve so-called "black money", which is money not declared to the taxman.

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

And offshore wagering companies are utilizing this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot people have registered accounts with overseas companies.

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest 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 prohibited for 2 years after some gamers and team officials were condemned of fixing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the right direction.

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

It would likewise open a substantial company chance for certified bookies and worldwide online sports betting business to set up operations in India.

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

"If you work together with sports betting companies, you will have a really efficient technique of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But many likewise think, that the taxes imposed on the bettor and the bookie will have to be affordable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful sports betting because (some) people wouldn't want to leave an audit trail by getting in the white market," says Mr Oborne.

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

Approval question

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

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

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

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime quickly."

Yet with the concept having been endorsed by a main panel for the first time, a minimum of an argument has actually ignited around a topic - which previously was considered a taboo.