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 runs to win against Australia.

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

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

Five minutes earlier his money was on Australia, now as the Indian batsman gets all set to deal with the last over he's changed his mind.

"I think India is winning, make the change," he informs his bookie on the phone.

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

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

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

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting distributes 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 gambling money is directed towards cricket.

Without any legal opportunity, punters put 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.

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

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law forbiding internet sports betting, there is nothing comparable here.

And overseas sports betting companies are utilizing this loophole to tempt Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the functioning 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 two years after some gamers and group authorities were condemned of fixing parts of the match at the wish of bookies.

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

Even gamblers feel that legalising sports betting wagering is a move in the best instructions.

"I do not mind paying some cash out my profits, as long as I can gamble publicly," states our cricket bettor.

It would likewise open a huge service opportunity for licensed bookmakers and global online sports betting business to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue many, by assisting make deals involved in sports betting more transparent.

"If you work along with wagering business, you will have a really efficient approach of stamping out match repairing," states George Oborne, who runs a mock betting website, India Bet.

But many likewise believe, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble legally.

However, there are restrictions.

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

He includes that people who use unaccounted cash to put big bets will never gamble legally.

Approval concern

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

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

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

"The procedure is so long and challenging 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 been endorsed by a main panel for the first time, a minimum of a dispute has fired up around a subject - which previously was thought about a taboo.