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 runs to win against Australia.

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

He has actually made more than 10 employ the last 30 minutes - not to talk about the match however to keep modifying his bet.

Five minutes previously his money was on Australia, today as the Indian batsman gets all set 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 on his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

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

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful sports betting distributes prosper in the country.

'Black money'

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

With no legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest 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 restricting web sports betting, there is nothing comparable here.

And overseas sports betting companies are using this loophole to lure Indians. Despite the fact that there are no online sports betting 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 ambiguous for online sports betting," says Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gaming", done through 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 idea, stating it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to suggest 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 sports betting scandal came to light.

Two franchises have been banned for two years after some players and group authorities were condemned of repairing parts of the match at the wish of bookmakers.

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

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

"I don't mind paying some cash out my earnings, as long as I can gamble openly," says our cricket gambler.

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

And it would assist limit 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 companies, you will have a very reliable technique of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

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

However, there are restrictions.

"Definitely there will be unlawful wagering since (some) people wouldn't want to leave an audit path by entering the white market," states Mr Oborne.

He adds that people who use unaccounted money to place huge bets will never bet lawfully.

Approval concern

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.

"Although lots of people are included in some sort of gambling - it's still a questionable concern for numerous," states 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 territory.

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

Yet with the concept having been endorsed by an official panel for the very first time, at least an argument has ignited around a subject - which till now was considered a taboo.