Howzat? The clamour to legalise sports betting 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 needing 17 go to win against Australia.

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

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

Five minutes previously his money was on Australia, and now as the Indian batsman prepares to face the last over he's changed his mind.

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

And a couple of minutes later on his prediction becomes a reality, as India wins the match in a nail-biting finish.

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

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, prohibited sports betting distributes flourish in the country.

'Black cash'

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

Without any legal opportunity, punters put 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 greatest individual 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 sort of gaming in India, but unlike in the US which has a law forbiding web sports betting, there is absolutely nothing comparable here.

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

"Legally you can escape [with this], as the law is ambiguous for online gambling," states Mumbai- based lawyer HP Ranina.

But regardless of this, it is "offline sports betting", done through call which control the marketplace.

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, saying it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been prohibited for 2 years after some players and group authorities were found guilty of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised sports betting will bring in tax profits for the exchequer that could amount to $2bn a year.

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

"I do not mind paying some cash out my profits, as long as I can gamble openly," says our cricket gambler.

It would likewise open a huge organization chance for licensed bookmakers and worldwide online wagering business to set up operations in India.

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

"If you work together with wagering business, you will have an extremely effective technique 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 have to be reasonable to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals would not wish to leave an audit path by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to position huge bets will never ever bet lawfully.

Approval question

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

"Although lots of individuals are included in some sort of gambling - it's still a controversial problem for numerous," states our unnamed punter.

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

"The process is so long and difficult 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 backed by an official panel for the very first time, at least an argument has ignited around a topic - which till now was thought about a taboo.