Howzat? The clamour to legalise sports 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 runs to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is viewing the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has actually made more than 10 contact the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, however now as the Indian batsman gets ready 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 on his prediction comes to life, as India wins the match in a nail-biting finish.

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

For more than 3 decades he's been wagering on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited wagering distributes grow in the country.

'Black cash'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

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

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

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

"Legally you can get away [with this], as the law is uncertain for online gambling," states Mumbai- based legal representative HP Ranina.

But despite 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 concept, saying it would help clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest 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 wagering scandal came to light.

Two franchises have actually been prohibited for two years after some gamers and group authorities were found guilty of repairing parts of the match at the behest of bookmakers.

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

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

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

It would also open a huge service chance for certified bookmakers and worldwide online sports betting companies to establish operations in India.

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

"If you work alongside sports betting business, you will have a really efficient method of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many also think, that the taxes levied on the gambler and the bookmaker will have to be reasonable to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be illegal wagering because (some) people would not desire to leave an audit path by going into the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to position huge bets will never gamble lawfully.

Approval question

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

"Although many individuals are associated with some sort of sports betting - it's still a questionable 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 in their territory.

"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the idea having been endorsed by a main panel for the very first time, a minimum of an argument has actually sparked around a subject - which till now was thought about a taboo.