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 needing 17 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male 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 hire the last thirty minutes - not to talk about the match however to keep modifying his bet.

Five minutes previously his money was on Australia, but now as the Indian batsman prepares to deal with the last over he's altered his mind.

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

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

"I have actually 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 allowed India. Despite that, illegal sports betting distributes prosper in the country.

'Black money'

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

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

Most of these deals include so-called "black cash", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law prohibiting web gaming, there is absolutely nothing comparable here.

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

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

But regardless of this, it is "offline gambling", done through telephone call which dominate the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend modifications 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 emerged.

Two franchises have been prohibited for 2 years after some players and group officials were condemned of fixing parts of the match at the behest of bookies.

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

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

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

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

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

"If you work alongside sports betting business, you will have an extremely effective technique of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But many also believe, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it appealing enough for them to gamble legally.

However, there are limitations.

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

He includes that people who use unaccounted cash to position huge bets will never ever gamble legally.

Approval question

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

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

And offered that India has a federal structural - each state will need to also pass a different law to legalise sports betting in their territory.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

Yet with the idea having been endorsed by an official panel for the first time, at least a debate has sparked around a topic - which up until now was considered a taboo.