Howzat? The clamour to legalise sports betting wagering 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 requiring 17 go to win against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged man is viewing 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 made more than 10 employ the last thirty minutes - not to talk about the match however to keep revising his bet.

Five minutes earlier his money was on Australia, now as the Indian batsman prepares to face 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 finish.

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

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

Besides horse racing, sports betting of any kind is not permitted in India. Despite that, illegal sports betting distributes prosper in the nation.

'Black cash'

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any sort of gaming in India, but unlike in the US which has a law restricting internet gambling, there is nothing similar here.

And offshore sports betting companies are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually registered accounts with overseas companies.

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

But in spite of this, it is "offline sports betting", done through call which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest changes 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 emerged.

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

The panel also argues that legalised sports betting will generate tax earnings for the exchequer that might total up to $2bn a year.

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

"I do not mind paying some cash out my earnings, as long as I can bet publicly," says our cricket gambler.

It would likewise open a big service chance for certified bookies and international online sports betting business to establish operations in India.

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

"If you work along with wagering companies, you will have a very reliable method of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookie will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are restrictions.

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

He includes that individuals who utilize unaccounted cash to position huge bets will never bet lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a difficult idea to offer.

"Even however many people are included in some sort of gambling - it's still a questionable issue for numerous," says our unnamed punter.

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

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

Yet with the concept having actually been endorsed by an official panel for the very first time, at least a debate has actually sparked around a topic - which up until now was considered a taboo.