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 main Mumbai, a middle-aged man is enjoying the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has actually made more than 10 employ the last 30 minutes - not to discuss the match but to keep modifying his bet.

Five minutes previously his cash was on Australia, however now as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

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

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

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

Besides horse racing, sports betting of any kind is not enabled in India. Despite that, illegal wagering distributes prosper in the country.

'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 opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

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

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

"Legally you can get away [with this], as the law is ambiguous for online gambling," states Mumbai- based legal representative HP Ranina.

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

Require legalisation

The clamour to legalise sports betting 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 favourite sport.

The Justice RM Lodha Commission was set up 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 emerged.

Two franchises have actually been prohibited for 2 years after some players and group authorities were condemned of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will bring in tax incomes for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting is a move in the best instructions.

"I don't mind paying some cash out my profits, as long as I can bet openly," says our cricket gambler.

It would likewise open a big service chance for certified bookmakers and worldwide online wagering business to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by helping make deals included in gambling more transparent.

"If you work along with wagering companies, you will have an extremely efficient technique 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 need to be reasonable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) people would not want to leave an audit path by going into the white market," states Mr Oborne.

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

Approval question

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

"Even though numerous people are associated with some sort of gaming - it's still a controversial problem for lots of," says our unnamed punter.

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

"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 soon."

Yet with the idea having actually been backed by a main panel for the very first time, a minimum of a debate has actually sparked around a topic - which previously was considered a taboo.