Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

Share

close panel
bet9ja.com
Share page

Copy link

About sharing

By Sameer Hashmi
bit.ly
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 located in central Mumbai, a middle-aged guy is watching the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

He has actually made more than 10 calls in the last 30 minutes - not to talk about the match however to keep revising his bet.

Five minutes previously his money was on Australia, however now as the Indian batsman gets prepared to deal with the last over he's altered his mind.
bet9ja.com
"I think India is winning, make the change," he informs his bookie on the phone.

And a few minutes later on his forecast comes true, as India wins the match in a nail-biting finish.

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

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

Aside from horse racing, sports betting of any kind is not enabled in India. Despite that, prohibited sports betting syndicates grow in the country.

'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 position bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

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

And overseas wagering business are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have actually signed up accounts with offshore companies.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated 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 was set up to recommend modifications 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 2 years after some gamers and team authorities were found guilty of repairing parts of the match at the request of bookmakers.

The panel likewise argues that legalised sports betting will generate tax revenues for the exchequer that might total up to $2bn a year.

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

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

It would likewise open a substantial business opportunity for licensed bookmakers and worldwide online wagering companies to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by helping make transactions associated with sports betting more transparent.

"If you work together with wagering business, you will have a very efficient technique of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But many likewise think, that the taxes imposed on the gambler and the bookie will have to be reasonable to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited wagering due to the fact that (some) people would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that people who use unaccounted cash to place big bets will never ever bet legally.

Approval question

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

"Although lots of people are involved 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 have to likewise pass a different law to legalise sports betting gambling in their territory.
bit.ly
"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 idea having been endorsed by an official panel for the very first time, at least a dispute has actually ignited around a subject - which until now was considered a taboo.
bet9ja.com