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 requiring 17 go to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his ideal hand.

He has made more than 10 employ the last thirty minutes - not to talk about 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 believe India is winning, make the modification," he tells his bookmaker on the phone.

And a few minutes later his prediction comes true, 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 years he's been wagering 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 enabled in India. Despite that, illegal wagering syndicates thrive in the nation.

'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.

With no legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest specific run scorer.

The majority of these transactions involve so-called "black money", which is money not declared 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 using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with overseas firms.

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

But despite this, it is "offline gambling", done through phone calls which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was set up 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 came to light.

Two franchises have actually been banned for 2 years after some gamers and team officials were condemned of repairing parts of the match at the request of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the ideal direction.

"I do not mind paying some cash out my earnings, as long as I can gamble openly," says our cricket gambler.

It would likewise open a substantial business opportunity for licensed bookies and global online sports betting companies to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions associated with gambling more transparent.

"If you work along with sports betting business, you will have an extremely effective method of marking out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookie will need to be sensible to make it attractive enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be prohibited wagering since (some) individuals wouldn't wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that people who utilize unaccounted cash to place big bets will never gamble legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a tough idea to offer.

"Although lots of people are associated with some sort of sports betting - it's still a questionable problem for numerous," states 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 gambling in their area.

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

Yet with the concept having been backed by a main panel for the first time, a minimum of a dispute has sparked around a topic - which till now was thought about a taboo.