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 17 runs to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged man is watching the video game, nervously. He’s resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

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

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

And a few minutes later on 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 expose his name as what he’s doing is unlawful in India.

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, unlawful sports betting syndicates 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 sports betting money is directed towards cricket.

With no legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank 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 money not declared to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, however unlike in the US which has a law prohibiting internet sports betting, there is nothing similar here.

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

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

But in spite of this, it is “offline gaming”, done through phone calls which control the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India’s Supreme Court proposed the idea, stating it would assist clamp down on corruption in the country’s favourite sport.

The Justice RM Lodha Commission was established to recommend changes 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 two years after some gamers and group officials were discovered guilty of fixing parts of the match at the wish of bookies.

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

Even gamblers feel that legalising sports betting is a move in the best instructions.

“I do not mind paying some money out my revenues, as long as I can gamble publicly,” says our cricket gambler.

It would also open a big company chance for licensed bookies and worldwide online wagering companies to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue numerous, by helping make deals included in sports betting more transparent.

“If you work along with wagering companies, you will have a very effective technique of stamping out match fixing,” states George Oborne, who runs a mock wagering website, India Bet.

But numerous also believe, that the taxes levied on the gambler and the bookie will need to be affordable to make it attractive enough for them to gamble legally.

However, there are constraints.

“Definitely there will be illegal sports betting because (some) individuals would not want to leave an audit path by getting in the white market,” says Mr Oborne.

He adds that people who use unaccounted money to position big bets will never ever bet legally.

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 tough idea to sell.

“Although lots of people are included in some sort of gambling – it’s still a controversial problem for numerous,” says our unnamed punter.

And given that India has a federal structural – each state will have to also pass a separate law to legalise sports betting gambling in their area.

“The process is so long and challenging that it will take years,” says Mr Ranina.”That’s why, we are cynical about this becoming a reality anytime quickly.”

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