Howzat? The clamour to legalise sports betting wagering 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 located in main Mumbai, a middle-aged male is seeing the game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his best hand.

He has made more than 10 hire the last thirty minutes - not to go over the match but to keep modifying his bet.

Five minutes earlier his cash was on Australia, however now as the Indian batsman prepares to deal with the last over he's altered 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 forecast comes real, as India wins the match in a nail-biting finish.

"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.

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

'Black cash'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.

Most of these deals involve so-called "black money", which is money not stated to the taxman.

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

And overseas wagering business are using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot people have registered accounts with overseas companies.

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

But regardless of this, it is "offline gaming", done through call which control the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend 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 emerged.

Two franchises have actually been banned for two years after some players and group officials were discovered guilty of repairing parts of the match at the behest of bookies.

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

Even gamblers feel that legalising sports betting is a relocation in the best instructions.

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

It would also open a substantial company chance for certified bookies and global online sports betting companies to set up operations in India.

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

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

But many likewise think, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it appealing enough for them to bet legally.

However, there are restrictions.

"Definitely there will be unlawful sports betting since (some) individuals wouldn't desire to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that people who use unaccounted cash to place big bets will never bet lawfully.

Approval question

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

"Although lots of people are included in some sort of gaming - it's still a questionable issue for numerous," says our unnamed punter.

And considered that India has a federal structural - each state will have to also pass a separate 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 coming true anytime quickly."

Yet with the concept having been backed by an official panel for the very first time, at least a debate has sparked around a topic - which previously was considered a taboo.