For Sports Gambling to Be Legalised

Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

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

In his two-bedroom house situated in central Mumbai, a middle-aged man is enjoying the game, nervously. He’s sitting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

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

“I think India is winning, make the change,” he tells his bookmaker 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 says with a childish glee.

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

Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting syndicates thrive in the nation.

‘Black cash’

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 sports betting money is directed towards cricket.

Without any legal avenue, punters place 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 greatest specific run scorer.

Most of these transactions involve so-called “black money”, which is money not declared to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law prohibiting web gambling, there is absolutely nothing similar here.

And offshore sports betting business are utilizing this loophole to draw Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have registered accounts with overseas companies.

“Legally you can get away [with this], as the law is uncertain for online gambling,” says Mumbai- based lawyer HP Ranina.

But despite this, it is “offline gaming”, done through call which dominate the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India’s Supreme Court proposed the concept, saying it would help secure down on corruption in the country’s favourite sport.

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

Two franchises have been banned for two years after some gamers and group officials were condemned of fixing parts of the match at the behest of bookies.

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

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

“I don’t mind paying some cash out my revenues, as long as I can gamble openly,” states our cricket gambler.

It would likewise open a substantial company opportunity for licensed bookies and international online sports betting companies to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by assisting make deals involved in sports betting more transparent.

“If you work together with sports betting business, you will have a very effective technique of stamping out match fixing,” says George Oborne, who runs a mock wagering site, India Bet.

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

However, there are restrictions.

“Definitely there will be unlawful sports betting since (some) individuals wouldn’t wish to leave an audit path by entering the white market,” says Mr Oborne.

He includes that people who utilize unaccounted cash to put big bets will never ever bet legally.

Approval question

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

“Even however many individuals are associated with some sort of gaming – it’s still a questionable concern for many,” says our unnamed punter.

And considered that India has a federal structural – each state will have to likewise pass a separate 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 cynical about this becoming a truth anytime quickly.”

Yet with the idea having actually been endorsed by an official panel for the very first time, at least an argument has ignited around a topic – which previously was thought about a taboo.