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 against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his best hand.

He has made more than 10 hire the last thirty minutes - not to discuss the match but to keep modifying his bet.

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

"I believe India is winning, make the modification," he informs his bookie on the phone.

And a few minutes later on his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

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

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

'Black cash'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any type of sports betting in India, however unlike in the US which has a law restricting internet gaming, there is nothing similar here.

And overseas wagering business are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas companies.

"Legally you can get away [with this], as the law is uncertain for online gaming," states Mumbai- based legal representative HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend 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 prohibited for 2 years after some gamers and team officials were found guilty of repairing parts of the match at the request of bookies.

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

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

"I don't mind paying some cash out my earnings, as long as I can bet publicly," says our cricket bettor.

It would likewise open a huge business opportunity for licensed bookies and international online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by helping make transactions involved in gambling more transparent.

"If you work together with sports betting companies, you will have an extremely efficient technique of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of likewise think, that the taxes imposed on the bettor and the bookie will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering because (some) individuals wouldn't want to leave an audit path by going into the white market," says Mr Oborne.

He adds that people who use unaccounted cash to place huge bets will never gamble lawfully.

Approval question

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

"Although lots of people are involved in some sort of gambling - it's still a controversial issue for numerous," states our unnamed punter.

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

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a reality anytime soon."

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