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 needing 17 go to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is enjoying the game, nervously. He's sitting 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 employ the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes earlier his cash was on Australia, now as the Indian batsman prepares to face the last over he's altered his mind.

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

And a few minutes later on his forecast comes to life, as India wins the match in a nail-biting surface.

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

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

Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, prohibited sports betting syndicates thrive in the nation.

'Black money'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual 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 sort of gambling in India, however unlike in the US which has a law forbiding internet gambling, there is absolutely nothing similar here.

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

"Legally you can get away [with this], as the law is ambiguous for online sports betting," says Mumbai- based legal representative HP Ranina.

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

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, saying it would help secure 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 regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have been banned for 2 years after some gamers and team officials were condemned of repairing parts of the match at the behest of bookies.

The panel likewise argues that legalised wagering will bring in tax incomes for the exchequer that might amount to $2bn a year.

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

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

It would likewise open a huge company opportunity for licensed bookmakers and international online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by assisting make deals included in sports betting more transparent.

"If you work together with wagering business, you will have a really efficient method of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous also believe, that the taxes levied on the gambler and the bookmaker will need to be sensible to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting because (some) people wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to position big bets will never ever bet legally.

Approval concern

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

"Even however lots of people are involved in some sort of sports betting - it's still a controversial issue for lots of," states our unnamed punter.

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

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a reality anytime soon."

Yet with the idea having actually been endorsed by an official panel for the very first time, a minimum of an argument has ignited around a subject - which previously was considered a taboo.