Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 go to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is seeing the video game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his ideal hand.

He has actually made more than 10 calls in the last 30 minutes - not to go over the match but to keep revising his bet.

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

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

And a few minutes later his prediction becomes a reality, 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 years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'Black money'

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

Without any legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest specific run scorer.

Most of these transactions involve so-called "black money", which is cash 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 prohibiting web sports betting, there is absolutely nothing comparable here.

And offshore wagering companies are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with offshore firms.

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

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

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, saying it would help secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest 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 banned for two years after some gamers and group authorities were condemned of repairing 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 bettors feel that legalising sports betting wagering is a relocation in the right instructions.

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

It would likewise open a big organization opportunity for certified bookies and global 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 deals associated with gambling more transparent.

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

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

However, there are limitations.

"Definitely there will be prohibited wagering since (some) people wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to put big bets will never ever bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard idea to offer.

"Although lots of people are associated with some sort of gambling - it's still a questionable problem for lots of," states our unnamed punter.

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

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the concept having been backed by a main panel for the first time, at least an argument has ignited around a topic - which up until now was considered a taboo.