For Sports Gambling to Be Legalised

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 needing 17 go to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged guy is enjoying the video game, nervously. He’s resting on the edge of his grey colour sofa with his cellphone glued to his right hand.

He has made more than 10 calls in the last 30 minutes – not to go over the match but 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 bookmaker on the phone.

And a few 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 three years he’s been wagering on cricket matches. We can’t reveal his name as what he’s doing is unlawful in India.

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

‘Black money’

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

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

Most of these deals involve so-called “black cash”, which is cash not declared to the taxman.

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

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

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

But despite this, it is “offline gambling”, done through telephone call which dominate 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 clamp down on corruption in the country’s favourite sport.

The Justice RM Lodha Commission was set up to recommend changes in the functioning of India’s cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been prohibited for two years after some players and team officials were of fixing parts of the match at the behest of bookmakers.

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

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

“I do not mind paying some cash out my profits, as long as I can gamble publicly,” states our cricket bettor.

It would also open a huge company chance for certified bookmakers and global online sports betting companies to set up operations in India.

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

“If you work alongside wagering business, you will have a really efficient method of marking out match repairing,” states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are limitations.

“Definitely there will be illegal wagering because (some) individuals wouldn’t desire to leave an audit trail by getting in the white market,” states Mr Oborne.

He includes that people who use unaccounted cash to position big bets will never ever gamble lawfully.

Approval question

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

“Despite the fact that lots of people are associated with some sort of gaming – it’s still a questionable issue for many,” states 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 gambling in their area.

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

Yet with the concept having actually been backed by an official panel for the first time, at least a dispute has sparked around a subject – which until now was considered a taboo.