For Sports Gambling to Be Legalised

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 needing 17 runs to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is enjoying the game, nervously. He’s resting on the edge of his grey colour couch with his cellphone glued to his best hand.

He has actually made more than 10 contact the last 30 minutes – not to talk about the match but to keep revising his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman prepares to deal with the last over he’s changed his mind.

“I believe India is winning, make the change,” he informs his bookmaker on the phone.

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

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

For more than 3 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 allowed India. Despite that, prohibited wagering distributes 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 sports betting cash is directed towards cricket.

Without any legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can bet on anything related 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 money not stated to the taxman.

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law forbiding web sports betting, there is absolutely nothing comparable here.

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

“Legally you can get away [with this], as the law is ambiguous for online gaming,” says Mumbai- based legal representative HP Ranina.

But despite this, it is “offline gambling”, done through phone calls which dominate the market.

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, saying it would help clamp down on corruption in the country’s favourite sport.

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

Two franchises have actually been prohibited for 2 years after some players and group officials were condemned of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will generate for the exchequer that might total up to $2bn a year.

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

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

It would likewise open a substantial organization opportunity for certified bookmakers and international online wagering companies to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by helping make deals included in sports betting more transparent.

“If you work alongside wagering companies, you will have a very efficient technique of marking out match fixing,” states George Oborne, who runs a mock sports betting site, India Bet.

But many likewise think, that the taxes imposed on the bettor and the bookie will have to be affordable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

“Definitely there will be illegal wagering since (some) people wouldn’t want to leave an audit path by going into the white market,” says Mr Oborne.

He adds that individuals who utilize unaccounted cash to place big bets will never bet legally.

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 difficult idea to sell.

“Even though lots of people are associated with some sort of gaming – it’s still a controversial problem for numerous,” 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 difficult that it will take years,” states Mr Ranina.”That’s why, we are cynical about this coming true anytime quickly.”

Yet with the concept having actually been backed by an official panel for the very first time, at least a debate has actually ignited around a topic – which up until now was considered a taboo.