Howzat? The clamour to legalise sports betting wagering 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 runs to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man 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 employ the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes previously his money was on Australia, however now 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 informs his bookie on the phone.

And a couple of minutes later on his prediction comes true, as India wins the match in a nail-biting surface.

"I have made $200 today," he says with a childlike glee.

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

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

'Black money'

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

With no legal opportunity, 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 individual run scorer.

Most of these deals involve so-called "black cash", which is money not stated to the taxman.

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

And offshore wagering companies are using this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals 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 in spite of this, it is "offline gaming", done through call which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established 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 sports betting scandal came to light.

Two franchises have been prohibited for two years after some players and group officials were condemned of repairing parts of the match at the behest of bookies.

The panel also argues that legalised wagering will generate tax incomes for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting is a move in the ideal instructions.

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

It would also open a big business opportunity for certified bookmakers and global online sports betting companies to establish operations in India.

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

"If you work alongside wagering companies, you will have a very effective method of stamping out match fixing," 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 bookmaker will need to be reasonable to make it appealing enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be unlawful sports betting since (some) people would not wish to leave an audit path by getting in the white market," states Mr Oborne.

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

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a tough concept to offer.

"Although lots of people are included in some sort of sports betting - it's still a questionable concern for lots of," states our unnamed punter.

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

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

Yet with the idea having been backed by a main panel for the very first time, a minimum of a debate has actually ignited around a subject - which till now was thought about a taboo.