Howzat? The clamour to legalise sports betting wagering 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 versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged man is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his ideal hand.

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

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

"I think India is winning, make the modification," he tells his bookie on the phone.

And a couple of minutes later his prediction 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 reveal his name as what he's doing is unlawful in India.

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

'Black cash'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest private 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 gambling in India, but unlike in the US which has a law prohibiting internet gambling, there is nothing comparable here.

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

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

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

Require 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 help secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest 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 two years after some players and team authorities were condemned of fixing parts of the match at the wish of bookies.

The panel also argues that legalised sports betting will bring in tax incomes for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting is a move in the ideal instructions.

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

It would likewise open a substantial service chance for certified bookies and worldwide online sports betting companies to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make deals associated with gambling more transparent.

"If you work together with sports betting business, you will have a very reliable technique of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are limitations.

"Definitely there will be prohibited wagering since (some) individuals would not desire to leave an audit path by getting in the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to position huge bets will never bet 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 sell.

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a controversial concern for numerous," says 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 negative about this coming true anytime soon."

Yet with the idea having been backed by a main panel for the first time, at least a dispute has fired up around a topic - which till now was thought about a taboo.