Howzat? The clamour to legalise sports betting in India

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bet9ja.com
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 needing 17 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged man is watching the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

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

Five minutes previously his money was on Australia, but now as the Indian batsman gets ready to face the last over he's altered his mind.

"I think India is winning, make the modification," he informs his bookie on the phone.

And a couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have actually 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 illegal in India.

Other than horse racing, sports betting wagering of any kind is not permitted in India. Despite that, prohibited wagering syndicates prosper in the nation.

'Black money'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest run scorer.

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

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

And offshore wagering companies are using this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot people have registered accounts with overseas companies.

"Legally you can escape [with this], as the law is ambiguous for online sports betting," states Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gaming", done through phone calls which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest changes 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 actually been banned for two years after some gamers and group officials were found guilty of fixing parts of the match at the request of bookmakers.

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

Even gamblers feel that legalising sports betting is a relocation in the ideal instructions.

"I do not mind paying some money out my profits, as long as I can bet publicly," says our cricket gambler.

It would likewise open a huge company opportunity for licensed bookmakers and worldwide online wagering business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by assisting make deals included in sports betting more transparent.

"If you work along with sports betting business, you will have an extremely effective approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it attractive enough for them to bet lawfully.

However, there are constraints.

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

He adds that individuals who use unaccounted cash to place big bets will never gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a difficult concept to sell.

"Despite the fact that many individuals are associated with some sort of gaming - it's still a questionable concern for many," says our unnamed punter.

And given that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their territory.
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"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a reality anytime quickly."

Yet with the idea having been backed by a main panel for the very first time, a minimum of a dispute has actually sparked around a subject - which previously was thought about a taboo.