Howzat? The clamour to legalise sports betting in India

Published

5 February 2016
bet9ja.com
Share

close panel
bet9ja.com
Share page

Copy link

About sharing

By Sameer Hashmi
bit.ly
Mumbai Business reporter

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

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

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

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

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

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

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

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

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

'Black cash'

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 cash is directed towards cricket.

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

Most of these transactions include so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law restricting internet gaming, there is absolutely nothing comparable here.

And offshore sports betting companies are utilizing this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore companies.
bet9ja.com
"Legally you can get away [with this], as the law is ambiguous for online sports betting," states Mumbai- based lawyer HP Ranina.

But in spite of this, it is "offline sports betting", done through call which dominate the market.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected 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 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 sports betting scandal emerged.

Two franchises have actually been banned for two years after some players and group officials were condemned of repairing parts of the match at the request of bookies.

The panel likewise argues that legalised wagering will generate tax earnings for the exchequer that could amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the right direction.

"I do not mind paying some money out my earnings, as long as I can gamble publicly," states our cricket gambler.

It would also open a substantial organization opportunity for licensed bookmakers and global online wagering companies to establish operations in India.
bet9ja.com
And it would assist restrict match repairing in cricket and other sports betting, argue many, by helping make transactions involved in gambling more .

"If you work together with sports betting business, you will have an extremely effective method of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

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

However, there are restrictions.

"Definitely there will be prohibited sports betting since (some) people would not wish to leave an audit path by getting in the white market," states Mr Oborne.

He adds that people who use unaccounted money to place big bets will never ever gamble lawfully.

Approval question

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

"Even though lots of people are involved in some sort of gaming - it's still a controversial issue for numerous," says our unnamed punter.
bet9ja.com
And offered that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their area.

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having actually been backed by an official panel for the very first time, at least a dispute has actually sparked around a topic - which previously was considered a taboo.