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

In his two-bedroom house situated in central Mumbai, a middle-aged man is enjoying the game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his best hand.

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

Five minutes previously his money was on Australia, and now as the Indian batsman prepares yourself 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 on his prediction comes to life, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting of any kind is not allowed 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 prohibited sports betting market is worth some $150bn a year. And much of that sports betting money is directed towards cricket.

With no legal avenue, punters put bets using 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 money", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law forbiding web sports betting, there is nothing comparable here.

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

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

But despite this, it is "offline gaming", done through telephone call which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established 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 sports betting scandal came to light.

Two franchises have been prohibited for 2 years after some players and group officials were condemned of repairing parts of the match at the behest of bookies.

The panel also argues that legalised sports betting will generate tax profits for the exchequer that could total up to $2bn a year.

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

"I don't mind paying some cash out my revenues, as long as I can gamble openly," says our cricket bettor.

It would likewise open a substantial company opportunity for certified bookmakers and global online sports betting business to set up operations in India.

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

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

But numerous also think, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to bet legally.

However, there are restrictions.

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

He includes that people who utilize unaccounted money to place huge bets will never bet lawfully.

Approval question

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

"Despite the fact that many individuals are involved in some sort of gaming - it's still a questionable issue for numerous," says our unnamed punter.

And provided that India has a federal structural - each state will need 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 fired up around a subject - which previously was considered a taboo.