Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business 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 central Mumbai, a middle-aged male is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

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

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

And a few minutes later on his forecast comes to life, as India wins the match in a nail-biting finish.

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

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

'Black cash'

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

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions involve so-called "black money", 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 prohibiting internet gambling, there is nothing comparable here.

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

"Legally you can escape [with this], as the law is uncertain for online gaming," says Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gambling", done through phone calls which control the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been banned for two years after some gamers and team authorities were discovered guilty of repairing parts of the match at the behest of bookmakers.

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

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

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

It would also open a substantial business chance for certified bookmakers and global online wagering business to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue many, by helping make deals included in gambling more transparent.

"If you work along with wagering companies, you will have a very reliable method of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise think, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal wagering due to the fact that (some) people wouldn't want to leave an audit trail by entering the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to place big bets will never ever gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a tough idea to offer.

"Although lots of people are included in some sort of sports betting - it's still a controversial problem for many," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling in their area.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative 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 a dispute has fired up around a subject - which previously was thought about a taboo.