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 press reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom house located 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 cellphone 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 modifying his bet.

Five minutes earlier his cash was on Australia, today as the Indian batsman gets prepared to deal with the last over he's changed his mind.

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

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

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

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

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

'Black cash'

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

Without any legal opportunity, punters put 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 highest private run scorer.

The majority of these deals include so-called "black cash", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law prohibiting web gambling, there is absolutely nothing comparable here.

And offshore sports betting companies are utilizing this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore firms.

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

But regardless of this, it is "offline gaming", done through phone calls which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications 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.

Two franchises have actually been banned for 2 years after some gamers and group officials were discovered guilty of fixing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the ideal direction.

"I don't mind paying some money out my profits, as long as I can bet publicly," states our cricket gambler.

It would likewise open a huge business chance for licensed bookmakers and global online wagering companies to establish operations in India.

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

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

But numerous likewise believe, that the taxes imposed on the gambler and the bookmaker will have to be sensible to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be illegal sports betting due to the fact that (some) people wouldn't want to leave an audit path by getting in the white market," states Mr Oborne.

He adds that individuals who use unaccounted money to put big bets will never bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard idea to sell.

"Despite the fact that many individuals are included in some sort of gaming - it's still a questionable concern for lots of," says our unnamed punter.

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

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the idea having been endorsed by an official panel for the very first time, at least a debate has actually fired up around a subject - which previously was considered a taboo.