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 needing 17 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged man is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

He has made more than 10 calls in 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 face the last over he's altered his mind.

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

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

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

For more than 3 years he's been banking on cricket matches. We can't reveal 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, illegal wagering syndicates grow in the country.

'Black money'

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

With no legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest 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, however unlike in the US which has a law forbiding web sports betting, there is absolutely nothing comparable here.

And overseas wagering companies are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with overseas companies.

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

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

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, saying it would assist clamp down on corruption in the nation'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 came to light.

Two franchises have been banned for 2 years after some gamers and team authorities were condemned of repairing parts of the match at the wish of bookmakers.

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

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

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

It would likewise open a big organization opportunity for certified bookies and global online sports betting business to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals included in gambling more transparent.

"If you work alongside sports betting companies, you will have a really reliable approach of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also believe, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be prohibited sports betting due to the fact that (some) people would not wish to leave an audit path by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to put huge bets will never ever bet legally.

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 tough concept to offer.

"Although lots of people are included in some sort of gaming - it's still a controversial issue for numerous," states our unnamed punter.

And offered 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 difficult that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a truth anytime quickly."

Yet with the idea having actually been endorsed by an official panel for the first time, at least an argument has actually fired up around a subject - which till now was thought about a taboo.