Howzat? The clamour to legalise sports betting wagering 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 requiring 17 go to win against Australia.

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

He has made more than 10 calls in the last thirty minutes - not to go over the match however to keep modifying his bet.

Five minutes previously his cash was on Australia, however now as the Indian batsman gets prepared to deal with the last over he's altered his mind.

"I believe India is winning, make the change," he tells his bookie on the phone.

And a few minutes later his prediction comes real, as India wins the match in a nail-biting finish.

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

For more than three years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

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

'Black money'

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

Without any legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And offshore wagering business are using this loophole to entice Indians. Although there are no online wagering 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 ambiguous for online gambling," states Mumbai- based lawyer HP Ranina.

But regardless of this, it is "offline sports betting", done through phone calls which control the marketplace.

Require legalisation

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

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

Two franchises have actually been banned for 2 years after some players and group officials were condemned of repairing parts of the match at the request of bookmakers.

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

Even gamblers feel that legalising sports betting is a relocation in the right instructions.

"I do not mind paying some money out my earnings, as long as I can gamble publicly," states our cricket gambler.

It would also open a big company chance for certified bookmakers and worldwide online wagering companies to establish operations in India.

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

"If you work together with sports betting companies, you will have a very reliable technique of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But many likewise believe, that the taxes levied on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be unlawful sports betting since (some) people wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted cash to put huge bets will never gamble lawfully.

Approval concern

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

"Although numerous people are associated with some sort of sports betting - it's still a controversial issue for lots of," says our unnamed punter.

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

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

Yet with the idea having actually been backed by an official panel for the first time, a minimum of an argument has actually sparked around a subject - which previously was thought about a taboo.