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 requiring 17 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is watching the game, nervously. He's resting 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 thirty minutes - not to go over the match however to keep revising his bet.

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

"I believe India is winning, make the change," he informs 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 actually made $200 today," he states with a childish glee.

For more than 3 decades he's been sports betting 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 allowed India. Despite that, unlawful wagering syndicates thrive in the nation.

'Black money'

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

With no legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can wager 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 money", which is cash not declared to the taxman.

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

And overseas wagering business 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 companies.

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

But in spite of this, it is "offline gaming", done through phone calls which control the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, stating it would assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest modifications in the functioning 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 actually been prohibited for 2 years after some players and team officials were condemned of fixing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting wagering is a move in the right direction.

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

It would also open a big organization chance for certified bookmakers and worldwide online wagering companies to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make deals associated with sports betting more transparent.

"If you work together with wagering business, you will have an extremely reliable technique of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of also think, 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 limitations.

"Definitely there will be unlawful wagering since (some) people would not want to leave an audit path by entering the white market," says Mr Oborne.

He includes that people who utilize unaccounted cash to put big bets will never bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a difficult idea to offer.

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

And offered that India has a federal structural - each state will have to also pass a separate law to legalise sports betting gambling in their territory.

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

Yet with the concept having actually been backed by a main panel for the first time, at least a debate has fired up around a subject - which previously was considered a taboo.