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 situated in main Mumbai, a middle-aged male is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

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

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

And a few minutes later his forecast comes real, 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 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Other than horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful wagering syndicates flourish in the nation.

'Black cash'

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 sports betting money is directed towards cricket.

With no legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these deals include so-called "black money", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law prohibiting internet gaming, there is nothing similar here.

And overseas sports betting companies are using this loophole to draw Indians. Although there are no online sports betting 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 ambiguous for online gambling," says Mumbai- based lawyer HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the performance 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 been banned for 2 years after some players and group officials were condemned of repairing parts of the match at the wish of bookies.

The panel also 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 move in the best direction.

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

It would also open a substantial business chance for certified bookmakers and international online sports betting companies to establish operations in India.

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

"If you work together with wagering business, you will have an extremely efficient technique of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise believe, that the taxes imposed on the bettor and the bookie will need to be sensible to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting due to the fact that (some) people wouldn't wish to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to place huge bets will never bet lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a tough concept to sell.

"Even however lots of people are included in some sort of sports betting - it's still a questionable problem for lots of," says our unnamed punter.

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

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the idea having actually been endorsed by a main panel for the very first time, at least a debate has actually ignited around a subject - which till now was thought about a taboo.