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 runs to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

Five minutes previously his money was on Australia, today 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 on his forecast becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he says 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.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting distributes prosper in the nation.

'Black cash'

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 sports betting cash is directed towards cricket.

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

The majority of these deals involve so-called "black money", which is money not declared to the taxman.

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

And offshore wagering companies are using this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot individuals have signed up accounts with offshore companies.

"Legally you can get away [with this], as the law is ambiguous for online sports betting," says Mumbai- based lawyer HP Ranina.

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist 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 came to light.

Two franchises have been banned for two years after some players and group officials were condemned of repairing parts of the match at the wish of bookmakers.

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

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

"I don't mind paying some cash out my earnings, as long as I can bet publicly," states our cricket bettor.

It would also open a big company chance for certified bookies and global online sports betting business to establish operations in India.

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

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

But many also think, that the taxes imposed on the gambler and the bookmaker will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be unlawful wagering because (some) people wouldn't wish to leave an audit path by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to position big bets will never bet lawfully.

Approval question

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

"Even however many people are associated with some sort of gaming - it's still a questionable concern for many," 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 in their area.

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

Yet with the idea having actually been endorsed by a main panel for the very first time, at least an argument has actually fired up around a topic - which till now was considered a taboo.