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 requiring 17 runs to win versus Australia.

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

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

Five minutes earlier his money was on Australia, and now as the Indian batsman gets all set to face the last over he's altered his mind.
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"I think India is winning, make the change," he tells his bookie on the phone.

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

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

For more than 3 years he's been wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

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

'Black money'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting market is worth some $150bn a year. And much of that gambling money is directed towards cricket.
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With no legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

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

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

But despite this, it is "offline gambling", done through telephone call which control the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the concept, stating it would help clamp down on corruption in the nation's preferred sport.
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The Justice RM Lodha Commission was established 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 emerged.

Two franchises have actually been banned for 2 years after some gamers and team officials were condemned of repairing parts of the match at the behest of bookies.

The panel also argues that legalised sports betting will bring in tax profits for the exchequer that could total up to $2bn a year.

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

"I don't mind paying some money out my profits, as long as I can gamble openly," states our cricket bettor.

It would also open a huge company opportunity for licensed bookmakers and worldwide online wagering business to set up 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 along with wagering business, you will have an extremely efficient technique of marking out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But many also think, that the taxes levied on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be illegal sports betting since (some) people wouldn't wish to leave an audit path by entering the white market," states Mr Oborne.

He adds that people who use unaccounted cash to position big bets will never gamble legally.

Approval concern

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

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

And considered that India has a federal structural - each state will have to also pass a separate law to sports betting in their territory.

"The process 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 been backed by a main panel for the first time, a minimum of an argument has actually ignited around a subject - which previously was considered a taboo.