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 go to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is watching 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 talk about the match however to keep modifying his bet.

Five minutes previously his money was on Australia, now as the Indian batsman prepares yourself 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 couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he says with a childish 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 unlawful in India.

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, illegal sports betting syndicates thrive 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 highest private run scorer.

Most of these transactions 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, but unlike in the US which has a law forbiding internet gaming, there is nothing similar here.

And offshore wagering companies are using this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore firms.

"Legally you can escape [with this], as the law is uncertain for online gambling," says Mumbai- based lawyer 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 sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the country's favourite 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 sports betting scandal came to light.

Two franchises have been prohibited for 2 years after some players and group officials were found guilty of fixing parts of the match at the request of bookmakers.

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

Even bettors feel that legalising sports betting wagering is a relocation in the right instructions.

"I don't mind paying some money out my earnings, as long as I can gamble openly," says our cricket gambler.

It would likewise open a substantial service opportunity for certified bookmakers and global online wagering companies to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals associated with gambling more transparent.

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

But numerous likewise think, that the taxes imposed on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited wagering because (some) individuals wouldn't wish to leave an audit path by going into the white market," states Mr Oborne.

He adds that people who utilize unaccounted cash to put big bets will never bet legally.

Approval question

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

"Even however many individuals are associated with some sort of gambling - it's still a questionable problem for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a separate 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 cynical about this ending up being a truth anytime quickly."

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