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 runs to win versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged man is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa 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 however to keep revising his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman gets prepared to face the last over he's altered his mind.

"I believe India is winning, make the modification," he tells his bookie on the phone.

And a couple of minutes later on his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

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

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

'Black cash'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions 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, however unlike in the US which has a law prohibiting web gambling, there is absolutely nothing similar here.

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

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

But regardless of this, it is "offline gambling", done through phone calls which control the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, saying 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 performance 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 been prohibited for 2 years after some gamers and team officials were discovered guilty of fixing parts of the match at the request of bookmakers.

The panel also argues that legalised wagering will generate tax incomes 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 instructions.

"I don't mind paying some money out my revenues, as long as I can gamble openly," states our cricket gambler.

It would also open a big organization chance for certified bookmakers and worldwide online wagering companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by helping make deals included in gambling more transparent.

"If you work together with sports betting companies, you will have an extremely reliable method of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to bet legally.

However, there are constraints.

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

He includes that individuals who use unaccounted cash to place huge bets will never ever gamble 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 tough concept to sell.

"Although lots of people are associated with some sort of sports betting - it's still a controversial issue for lots of," states our unnamed punter.

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

"The process is so long and tricky 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 an official panel for the very first time, a minimum of a dispute has sparked around a topic - which until now was thought about a taboo.