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 runs to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged guy is viewing the 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 actually made more than 10 contact the last 30 minutes - not to go over the match but to keep modifying his bet.

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

"I think India is winning, make the change," he tells his bookmaker on the phone.

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

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

For more than 3 decades 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 permitted in India. Despite that, prohibited sports betting syndicates grow in the country.

'Black money'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.

The majority of these transactions include so-called "black cash", which is money not stated 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 absolutely nothing similar here.

And overseas sports betting companies are utilizing this loophole to tempt Indians. Although there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with offshore companies.

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

But despite this, it is "offline gaming", done through phone calls which dominate the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated 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 suggest changes 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 came to light.

Two franchises have actually been prohibited for 2 years after some players and team officials were found guilty of repairing parts of the match at the wish of bookies.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the best instructions.

"I do not mind paying some cash out my earnings, as long as I can bet publicly," says our cricket gambler.

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

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions associated with sports betting more transparent.

"If you work along with sports betting business, you will have a very reliable method of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise think, that the taxes imposed on the gambler and the bookie will need to be affordable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be illegal wagering since (some) individuals would not wish to leave an audit trail by going into the white market," says Mr Oborne.

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

Approval concern

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

"Even though many individuals are involved in some sort of gaming - it's still a controversial issue for many," says 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 procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime soon."

Yet with the idea having been endorsed by a main panel for the very first time, a minimum of a debate has sparked around a subject - which previously was considered a taboo.