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 requiring 17 go to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged male is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has actually made more than 10 contact the last 30 minutes - not to talk about the match but to keep revising his bet.

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

"I believe India is winning, make the modification," 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 made $200 today," he says with a childish glee.

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

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, illegal sports betting syndicates grow in the country.

'Black cash'

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 sports betting cash is directed towards cricket.

Without any legal opportunity, punters place 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 individual run scorer.

The majority of these transactions involve so-called "black money", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law forbiding web gambling, there is absolutely nothing comparable here.

And offshore wagering business are using 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 overseas firms.

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

But regardless of this, it is "offline sports betting", done through phone calls which dominate the market.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would help clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to recommend changes 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 actually been banned for 2 years after some players and group authorities were condemned of fixing parts of the match at the wish 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 bettors feel that legalising sports betting wagering is a move in the ideal instructions.

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

It would also open a huge organization opportunity for licensed bookies and international online wagering companies to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions associated with sports betting more transparent.

"If you work alongside wagering companies, you will have a really effective technique of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes imposed on the bettor and the bookie will have to be reasonable to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be illegal sports betting because (some) people wouldn't wish 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 required to develop a brand-new law, and politically this will be a hard idea to sell.

"Despite the fact that lots of people are included in some sort of sports betting - it's still a controversial concern for many," 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 gambling in their area.

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

Yet with the idea having been backed by an official panel for the very first time, at least an argument has fired up around a subject - which previously was considered a taboo.