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 India needing 17 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is seeing the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right hand.

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

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

"I believe India is winning, make the change," he informs 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 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering distributes 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 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 related to the cricket match, from who is winning to the highest specific run scorer.

Most of these transactions involve so-called "black money", which is money not declared to the taxman.

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

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

"Legally you can escape [with this], as the law is uncertain for online gambling," states Mumbai- based lawyer HP Ranina.

But in spite of this, it is "offline gambling", done through call which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been banned for 2 years after some gamers and group officials were discovered guilty of repairing parts of the match at the request of bookmakers.

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

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

"I don't mind paying some cash out my profits, as long as I can gamble openly," states our cricket bettor.

It would also open a substantial company chance for licensed bookmakers and global online wagering business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue lots of, by helping make deals associated with sports betting more transparent.

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

But many also think, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be unlawful wagering due to the fact that (some) individuals wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to position big bets will never gamble lawfully.

Approval question

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

"Although lots of people are involved in some sort of sports betting - it's still a controversial problem for numerous," 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 gambling 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 coming true anytime quickly."

Yet with the idea having been endorsed by an official panel for the very first time, a minimum of a debate has fired up around a subject - which till now was thought about a taboo.