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 versus Australia.

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

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

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

"I believe India is winning, make the change," he informs his bookmaker on the phone.

And a few minutes later his prediction comes true, as India wins the match in a nail-biting finish.

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

For more than three years he's been wagering 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, prohibited wagering distributes flourish in the country.

'Black cash'

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 money is directed towards cricket.

Without any legal opportunity, punters put bets using 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.

Most of these transactions include so-called "black money", which is money not stated to the taxman.

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

And overseas wagering business are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas firms.

"Legally you can get away [with this], as the law is uncertain 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 market.

Require legalisation

The clamour to legalise wagering in cricket has 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 favourite sport.

The Justice RM Lodha Commission was set up to recommend changes 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 emerged.

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

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

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

"I don't mind paying some cash out my revenues, as long as I can bet publicly," states our cricket bettor.

It would likewise open a big organization chance for certified bookies and worldwide online sports betting companies to establish operations in India.

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

"If you work along with sports betting business, you will have a very reliable approach of marking out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) people would not wish to leave an audit path by entering the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to put huge bets will never ever gamble lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a difficult concept to sell.

"Despite the fact that lots of people are included in some sort of sports betting - it's still a questionable problem for many," says our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their area.

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

Yet with the idea having been backed by an official panel for the very first time, a minimum of a dispute has actually ignited around a subject - which up until now was thought about a taboo.