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 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 situated in central Mumbai, a middle-aged male is seeing the game, nervously. He’s sitting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

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

Five minutes previously his money was on Australia, today as the Indian batsman prepares yourself to face the last over he’s changed his mind.

“I think India is winning, make the modification,” he tells his bookie on the phone.

And a couple of minutes later his forecast becomes a reality, as the match in a nail-biting surface.

“I have actually made $200 today,” he says with a childish glee.

For more than 3 decades he’s been banking on cricket matches. We can’t reveal his name as what he’s doing is illegal in India.

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

‘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 cash is directed towards cricket.

Without any legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

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

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

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

But in spite of this, it is “offline gaming”, done through telephone call which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India’s cricket regulative 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 authorities were found guilty of repairing parts of the match at the wish of bookmakers.

The panel also 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 move in the ideal direction.

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

It would also open a big organization opportunity for certified bookies and worldwide online wagering business to set up operations in India.

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

“If you work alongside wagering business, you will have an extremely effective approach of marking out match repairing,” says George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes imposed on the bettor and the bookie will have to be sensible to make it attractive enough for them to bet legally.

However, there are restrictions.

“Definitely there will be prohibited sports betting because (some) people wouldn’t wish to leave an audit trail by entering the white market,” states Mr Oborne.

He includes that people who utilize unaccounted money to position big bets will never gamble lawfully.

Approval question

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

“Although lots of people are associated with some sort of gambling – it’s still a questionable concern for many,” says our unnamed punter.

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

“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 actually been endorsed by an official panel for the very first time, a minimum of a dispute has actually fired up around a topic – which previously was thought about a taboo.