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

In his two-bedroom house situated in main Mumbai, a middle-aged guy is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his best hand.

He has actually made more than 10 hire the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes previously his money was on Australia, and now as the Indian batsman prepares 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 forecast comes true, as India wins the match in a nail-biting surface.

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

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

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting distributes flourish in the nation.

'Black money'

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

With no legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these transactions involve so-called "black cash", which is money not stated 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 sports betting, there is nothing comparable here.

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

"Legally you can get away [with this], as the law is unclear for online gaming," states Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gaming", done through telephone call which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications in the functioning of India's cricket regulatory 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 team officials were found guilty of repairing parts of the match at the wish of bookmakers.

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

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

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

It would likewise open a huge company chance for licensed bookies and international online wagering companies to establish operations in India.

And it would help restrict match fixing 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 reliable technique of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But lots of likewise think, that the taxes imposed on the gambler and the bookmaker will have to be sensible to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering due to the fact that (some) people would not desire to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who use unaccounted money to place huge bets will never bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a 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 gaming - it's still a questionable issue for lots of," states our unnamed punter.

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

"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a reality anytime quickly."

Yet with the concept having actually been backed by a main panel for the very first time, a minimum of an argument has fired up around a topic - which previously was considered a taboo.