Howzat? The clamour to legalise sports betting wagering 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 requiring 17 runs to win against Australia.
In his two-bedroom home situated in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.
He has made more than 10 employ the last thirty minutes - not to discuss the match but to keep revising his bet.
Five minutes earlier his cash was on Australia, today as the Indian batsman prepares yourself to face the last over he's changed his mind.
"I think India is winning, make the change," he tells his bookmaker on the phone.
And a few minutes later on his forecast comes real, as India wins the match in a nail-biting finish.
"I have made $200 today," he says 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 prohibited in India.
Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful sports betting syndicates thrive in the nation.
'Black money'
According to the Doha-based International Centre for sports betting Security, India's illegal sports betting market is worth some $150bn a year. And much of that gambling cash is directed towards cricket.
With no legal opportunity, 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 greatest individual run scorer.
The majority of these transactions involve so-called "black money", which is cash not declared to the taxman.
The 1867 Public Gambling Act bars any type of gaming in India, however unlike in the US which has a law prohibiting internet sports betting, there is nothing comparable here.
And overseas sports betting companies are using this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with offshore companies.
"Legally you can get away [with this], as the law is ambiguous for online sports betting," states Mumbai- based legal representative HP Ranina.
But despite this, it is "offline gaming", done through call 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 idea, stating it would assist clamp down on corruption in the country's favourite sport.
The Justice RM Lodha Commission was set up to suggest 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 been prohibited for two years after some players and team authorities were condemned of repairing parts of the match at the request of bookmakers.
The panel likewise argues that legalised sports betting will bring in tax earnings for the exchequer that might amount to $2bn a year.
Even gamblers feel that legalising sports betting wagering is a relocation in the right direction.
"I do not mind paying some cash out my revenues, as long as I can bet publicly," says our cricket bettor.
It would also open a substantial business chance for licensed bookmakers and international online wagering companies to establish operations in India.
And it would assist limit match fixing in cricket and other sports betting, argue numerous, by helping make transactions associated with gambling more transparent.
"If you work together with wagering business, you will have a very reliable method of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.
But numerous likewise believe, that the taxes levied on the bettor and the bookie will need to be sensible to make it appealing enough for them to gamble lawfully.
However, there are constraints.
"Definitely there will be unlawful wagering due to the fact that (some) people would not wish to leave an audit trail by going into the white market," says Mr Oborne.
He adds that individuals who use unaccounted cash to put huge bets will never ever bet legally.
Approval question
For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a tough idea to offer.
"Despite the fact that lots of people are included in some sort of gambling - it's still a controversial concern for many," states our unnamed punter.
And given that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their area.
"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."
Yet with the concept having been endorsed by a main panel for the first time, a minimum of a dispute has actually fired up around a topic - which previously was thought about a taboo.
