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 requiring 17 runs to win versus Australia.

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

He has made more than 10 employ the last 30 minutes - not to discuss the match however to keep modifying his bet.

Five minutes previously his money was on Australia, and now as the Indian batsman prepares yourself to face the last over he's altered his mind.

"I believe India is winning, make the modification," he tells his bookie 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 childlike glee.

For more than 3 decades he's been wagering on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering syndicates flourish in the country.

'Black money'

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.

With no legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these deals include so-called "black cash", which is cash not stated 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 gaming, there is absolutely nothing similar here.

And overseas sports betting companies are utilizing this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot individuals have registered accounts with offshore companies.

"Legally you can escape [with this], as the law is ambiguous for online sports betting," says Mumbai- based attorney HP Ranina.

But despite this, it is "offline gaming", done through phone calls which control the market.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest 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 actually been prohibited for two years after some gamers and group officials were condemned of fixing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting wagering is a move in the best 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 service opportunity for licensed bookmakers and international online sports betting business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions associated with gambling more transparent.

"If you work alongside sports betting business, you will have a really reliable method of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many also believe, that the taxes imposed on the gambler and the bookie will have to be affordable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting since (some) individuals wouldn't desire to leave an audit trail by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to put huge bets will never bet lawfully.

Approval concern

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

"Even however lots of people are included in some sort of sports betting - it's still a controversial issue for numerous," says 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 procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

Yet with the idea having actually been backed by an official panel for the very first time, at least a debate has actually fired up around a subject - which until now was considered a taboo.