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 house situated in main Mumbai, a middle-aged male is watching the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone 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 previously his money was on Australia, however now as the Indian batsman gets all set 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 couple of minutes later on his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

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

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, prohibited sports betting syndicates prosper in the country.

'Black cash'

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

Without any legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions include 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 forbiding internet sports betting, there is absolutely nothing similar here.

And overseas sports betting companies are utilizing this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot individuals have signed up accounts with offshore companies.

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the idea, saying 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 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 two years after some gamers and group officials were condemned of repairing parts of the match at the request of bookies.

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

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

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

It would also open a substantial organization chance for certified bookmakers and international online sports betting business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with sports betting more transparent.

"If you work alongside wagering companies, you will have a really efficient technique of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But many also think, that the taxes levied on the gambler and the bookie will have to be sensible to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering due to the fact that (some) individuals wouldn't want to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted money to put big bets will never ever gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a difficult concept to offer.

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a questionable problem for numerous," says our unnamed punter.

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

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the concept having actually been endorsed by a main panel for the first time, a minimum of a dispute has ignited around a subject - which until now was considered a taboo.