Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016
bit.ly
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 go to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has made more than 10 calls in the last thirty minutes - not to discuss the match but to keep revising his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman gets to deal with the last over he's changed his mind.
bit.ly
"I think India is winning, make the change," he informs his bookmaker on the phone.

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

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

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

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering 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 deserves some $150bn a year. And much of that gambling money is directed towards cricket.

Without any legal opportunity, punters put 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.
bit.ly
The majority of these transactions involve so-called "black money", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any sort of gaming in India, however unlike in the US which has a law forbiding web sports betting, there is nothing similar here.
bet9ja.com
And offshore wagering companies are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas companies.
bet9ja.com
"Legally you can escape [with this], as the law is uncertain for online gaming," says Mumbai- based legal representative HP Ranina.

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established 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 wagering scandal came to light.
bet9ja.com
Two franchises have been prohibited for 2 years after some gamers and group officials were condemned of repairing parts of the match at the behest of bookies.

The panel likewise argues that legalised wagering will bring in tax profits for the exchequer that might amount to $2bn a year.

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

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

It would also open a substantial organization chance for certified bookies and global online sports betting business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by assisting make transactions included in gambling more transparent.

"If you work alongside wagering business, you will have an extremely reliable method of stamping out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But many also believe, that the taxes levied on the gambler and the bookmaker will need to be affordable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting because (some) people wouldn't wish to leave an audit path by entering the white market," states Mr Oborne.

He adds that people who use unaccounted cash to position huge bets will never gamble legally.

Approval question
bet9ja.com
For sports betting to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a tough idea to sell.

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a questionable problem for numerous," states our unnamed punter.

And considered 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 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 truth anytime soon."

Yet with the concept having actually been backed by a main panel for the first time, at least a dispute has ignited around a topic - which previously was considered a taboo.