For Sports Gambling to Be Legalised

Howzat? The clamour to legalise sports betting in India


5 February 2016


By Sameer Hashmi


Mumbai Business reporter


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


In his two-bedroom house situated in main Mumbai, a middle-aged man is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.


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


Five minutes earlier his money was on Australia, however now as the Indian batsman gets ready to deal with the last over he's changed his mind.


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


And a few minutes later his prediction comes to life, as India wins the match in a nail-biting finish.


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


For more than 3 years he's been banking on cricket matches. We can't reveal 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, illegal sports betting syndicates grow in the nation.


'Black money'


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


With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual 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 sort of sports betting in India, but unlike in the US which has a law forbiding internet sports betting, there is absolutely nothing comparable here.


And overseas sports betting companies are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with offshore firms.


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


But in spite of this, it is "offline gambling", done through phone calls which dominate the marketplace.


Calls for legalisation


The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the country's preferred sport.


The Justice RM Lodha Commission was established to suggest changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.


Two franchises have actually been banned for two years after some players and team officials were discovered guilty of repairing parts of the match at the request of bookmakers.


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


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


"I don't mind paying some money out my earnings, as long as I can bet openly," says our cricket bettor.


It would likewise open a big organization opportunity for certified bookmakers and global online wagering business to establish operations in India.


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


"If you work alongside sports betting business, you will have a very reliable technique of marking out match repairing," 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 legally.


However, there are limitations.


"Definitely there will be prohibited wagering due to the fact that (some) individuals would not want to leave an audit trail by going into the white market," states Mr Oborne.


He adds that people who utilize unaccounted money to place big bets will never ever bet 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 hard idea to offer.




"Although lots of people are associated with some sort of gambling - it's still a questionable concern for lots of," says our unnamed punter.


And considered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their area.


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


Yet with the idea having been endorsed by a main panel for the very first time, at least a dispute has actually ignited around a subject - which up until now was considered a taboo.