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 needing 17 runs to win versus Australia.

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

He has made more than 10 contact the last 30 minutes - not to go over the match but to keep modifying his bet.

Five minutes previously his cash 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 modification," he informs his bookmaker on the phone.

And a couple of minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

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

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

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

'Black cash'

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

Without any legal opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law prohibiting web gaming, there is absolutely nothing comparable here.

And overseas wagering 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 overseas firms.

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

But in spite of this, it is "offline gaming", done through phone calls which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 2 years after some gamers and team officials were discovered guilty of repairing parts of the match at the request of bookmakers.

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

Even bettors feel that legalising sports betting wagering is a relocation in the right direction.

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

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

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make transactions included in gambling more transparent.

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

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

However, there are limitations.

"Definitely there will be prohibited sports betting because (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to position huge bets will never ever gamble legally.

Approval question

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

"Despite the fact that many individuals are included in some sort of sports betting - it's still a controversial problem for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their territory.

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this becoming a reality anytime quickly."

Yet with the concept having actually been backed by a main panel for the first time, at least a debate has fired up around a topic - which previously was thought about a taboo.