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 runs to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged guy is seeing the video 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 actually made more than 10 calls in the last 30 minutes - not to talk about the match however to keep revising his bet.

Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares yourself to face the last over he's altered his mind.

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

And a couple of minutes later his prediction comes to life, as India wins the match in a nail-biting surface.

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

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

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

'Black money'

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

With no legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these deals include so-called "black money", which is cash not stated to the taxman.

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

And offshore wagering companies are utilizing this loophole to tempt 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 get away [with this], as the law is unclear for online gaming," says Mumbai- based legal representative HP Ranina.

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest 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 sports betting scandal came to light.

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

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

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

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

It would likewise open a substantial organization chance for licensed bookies and worldwide online wagering business to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by helping make deals associated with gambling more transparent.

"If you work along with sports betting business, you will have a really efficient approach of marking out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.

But many likewise think, that the taxes imposed on the gambler and the bookie will need to be affordable to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering since (some) individuals would not desire to leave an audit path by entering the white market," states Mr Oborne.

He adds that people who use unaccounted cash to put big bets will never ever bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a hard concept to sell.

"Although lots of people are associated with some sort of gambling - it's still a questionable issue for lots of," states our unnamed punter.

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

"The process 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 soon."

Yet with the idea having been endorsed by an official panel for the very first time, a minimum of an argument has fired up around a subject - which previously was considered a taboo.