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 runs to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

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

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

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

And a couple of minutes later his prediction comes to life, as India wins the match in a nail-biting surface.

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

For more than three decades he's been banking on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting syndicates thrive in the country.

'Black cash'

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

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

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

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

And offshore wagering business are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have actually registered accounts with overseas companies.

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

But regardless of this, it is "offline sports betting", done through call which control 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 concept, saying it would assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to recommend 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 actually been banned for 2 years after some gamers and group authorities were found guilty of repairing parts of the match at the request of bookmakers.

The panel also argues that legalised wagering will bring in tax profits for the exchequer that could total up to $2bn a year.

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

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

It would also open a substantial service opportunity for certified bookmakers and international online wagering companies to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by assisting make deals involved in sports betting 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 wagering site, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookie will have to be reasonable to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) individuals would not wish to leave an audit path by entering the white market," states Mr Oborne.

He adds that people who use unaccounted money to place big bets will never ever bet lawfully.

Approval concern

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

"Despite the fact that lots of individuals are involved in some sort of gambling - it's still a questionable issue 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 in their area.

"The process is so long and tricky 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 actually been endorsed by a main panel for the very first time, at least a debate has fired up around a subject - which previously was thought about a taboo.