Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

Share

close panel

Share page
bit.ly
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 situated in main Mumbai, a middle-aged male is enjoying the video game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his right hand.

He has actually made more than 10 contact the last thirty minutes - not to talk about the match however to keep modifying his bet.

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

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

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

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

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

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful sports betting distributes grow in the country.

'Black cash'

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 sports betting money is directed towards cricket.

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

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

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law prohibiting internet gambling, there is nothing comparable here.
bit.ly
And overseas sports betting companies are utilizing this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with overseas companies.

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

But despite this, it is "offline gambling", done through phone calls 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, stating it would help clamp down on corruption in the country's preferred 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 sports betting scandal emerged.
bit.ly
Two franchises have actually been prohibited for 2 years after some players and team authorities were condemned of repairing parts of the match at the wish of bookmakers.

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

Even gamblers feel that legalising sports betting is a move in the ideal direction.
bet9ja.com
"I don't mind paying some cash out my profits, as long as I can gamble openly," states our cricket bettor.

It would likewise open a big service chance for certified and international online sports betting business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make deals involved in gambling more transparent.

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

But lots of also believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who use unaccounted money to place huge bets will never ever bet lawfully.

Approval concern

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

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

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

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

Yet with the concept having been backed by an official panel for the very first time, a minimum of an argument has actually fired up around a topic - which till now was considered a taboo.
bet9ja.com