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 go to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has made more than 10 employ the last 30 minutes - not to go over the match however to keep modifying his bet.

Five minutes earlier his cash was on Australia, but now as the Indian batsman gets prepared to deal with the last over he's altered his mind.

"I believe India is winning, make the modification," he tells 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 finish.

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

For more than 3 years 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, unlawful wagering syndicates grow in the country.

'Black cash'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law restricting web gambling, there is nothing similar here.

And offshore wagering business are using this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with overseas firms.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend 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 came to light.

Two franchises have actually been prohibited for 2 years after some players and team authorities were found guilty of fixing parts of the match at the request of bookmakers.

The panel also argues that legalised wagering will bring in tax incomes for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the right instructions.

"I do not mind paying some money out my revenues, as long as I can bet openly," says our cricket bettor.

It would likewise open a big service chance for certified bookies and worldwide online wagering business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by assisting make deals included in sports betting more transparent.

"If you work along with wagering companies, you will have a really effective technique of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) individuals wouldn't desire to leave an audit trail by going into the white market," says Mr Oborne.

He adds that people who utilize unaccounted money to put big bets will never bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a difficult concept to offer.

"Although numerous individuals are involved in some sort of sports betting - it's still a controversial concern for numerous," says our unnamed punter.

And provided that India has a federal structural - each state will need to likewise 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 truth anytime quickly."

Yet with the concept having been endorsed by an official panel for the very first time, a minimum of an argument has actually ignited around a topic - which up until now was thought about a taboo.