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

He has made more than 10 hire the last 30 minutes - not to talk about the match but to keep modifying his bet.

Five minutes previously his money was on Australia, now as the Indian batsman gets all set to deal with the last over he's altered his mind.

"I believe India is winning, make the change," he tells his bookmaker on the phone.

And a few minutes later on his prediction comes to life, 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 banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal 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 gambling cash is directed towards cricket.

Without any legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

Most of these deals include so-called "black money", which is money not declared to the taxman.

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

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

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, stating it would assist 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 regulative 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 group authorities were found guilty of fixing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting is a relocation in the right direction.

"I do not mind paying some money out my earnings, as long as I can bet publicly," states our cricket bettor.

It would also open a substantial organization opportunity for certified bookies and worldwide online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by helping make transactions involved in gambling more transparent.

"If you work together with wagering companies, you will have an extremely effective approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of also believe, that the taxes levied on the gambler and the bookie will need to be reasonable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) individuals wouldn't want to leave an audit path by getting in the white market," states Mr Oborne.

He includes that individuals who use unaccounted money to position huge bets will never ever gamble legally.

Approval concern

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

"Despite the fact that many individuals are involved in some sort of gaming - it's still a questionable concern for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their territory.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the idea having been endorsed by an official panel for the very first time, a minimum of a dispute has ignited around a subject - which until now was considered a taboo.