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 requiring 17 runs to win against Australia.

In his two-bedroom home 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 mobile phone glued to his right hand.

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

Five minutes previously his money was on Australia, now as the Indian batsman gets ready to deal with the last over he's changed his mind.

"I think India is winning, make the modification," he tells his bookie on the phone.

And a few minutes later his prediction becomes a reality, 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 sports betting on cricket matches. We can't expose his name as what he's doing is unlawful in India.

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

'Black cash'

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 money is directed towards cricket.

Without any legal opportunity, punters position bets using 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 deals include so-called "black money", 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 web gambling, there is nothing similar here.

And offshore wagering companies are utilizing this loophole to entice Indians. Despite the fact that there are no online wagering 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 ambiguous for online gambling," states Mumbai- based lawyer HP Ranina.

But in spite of this, it is "offline gaming", done through phone calls which dominate 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 help secure down on corruption in the country's favourite 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 sports betting scandal came to light.

Two franchises have been prohibited for 2 years after some gamers and group authorities were discovered guilty of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax revenues for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the right instructions.

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

It would also open a huge business opportunity for certified bookmakers and global online wagering companies to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by helping make deals included in sports betting more transparent.

"If you work alongside sports betting companies, you will have a really reliable method of marking out match fixing," says George Oborne, who runs a mock wagering website, 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 appealing enough for them to bet legally.

However, there are limitations.

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

He adds that individuals who use unaccounted money to place big bets will never gamble legally.

Approval concern

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

"Even though lots of people are involved in some sort of sports betting - it's still a controversial problem for numerous," states our unnamed punter.

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

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a reality anytime soon."

Yet with the concept having actually been endorsed by a main panel for the very first time, a minimum of a dispute has fired up around a topic - which previously was considered a taboo.