Howzat? The clamour to legalise sports betting 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 main Mumbai, a middle-aged male is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right hand.

He has actually made more than 10 employ 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 gets ready to deal with the last over he's altered his mind.

"I think India is winning, make the modification," he informs his bookmaker on the phone.

And a few minutes later 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 childlike glee.

For more than three years he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering distributes flourish in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting market is worth 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 bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

Most of these transactions involve so-called "black cash", which is money not declared to the taxman.

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

And offshore wagering companies 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," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline sports betting", done through call which control the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, stating it would assist 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 regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been prohibited for 2 years after some gamers and team officials were found guilty of repairing parts of the match at the request of bookmakers.

The panel also argues that legalised sports betting will generate tax revenues for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some money out my profits, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a big business chance for licensed bookies and global online sports betting business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by assisting make deals involved in gambling more transparent.

"If you work along with wagering companies, you will have a really efficient technique of stamping out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of also believe, that the taxes imposed on the gambler and the bookie will have to be affordable to make it attractive enough for them to gamble legally.

However, there are constraints.

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

He adds that individuals who utilize unaccounted money to place big bets will never bet lawfully.

Approval question

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

"Even however lots of individuals are included in some sort of gaming - it's still a controversial issue for numerous," states our unnamed punter.

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

"The process is so long and tricky 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 backed by an official panel for the first time, at least a debate has sparked around a subject - which previously was thought about a taboo.