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 versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is watching the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his ideal hand.

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

Five minutes previously his money was on Australia, and now as the Indian batsman prepares yourself 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 couple of minutes later on his prediction comes real, 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 wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'Black cash'

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

With no legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

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

And offshore 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 actually registered accounts with offshore companies.

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

But despite this, it is "offline gaming", done through phone calls which control the market.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest changes in the functioning 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 prohibited for 2 years after some players and team officials were condemned of fixing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the right direction.

"I do not mind paying some money out my earnings, as long as I can bet publicly," says our cricket gambler.

It would also open a huge company opportunity for licensed bookmakers and international online sports betting companies to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue many, by assisting make deals associated with sports betting more transparent.

"If you work together with wagering business, you will have a really effective approach of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise think, that the taxes imposed on the bettor and the bookie will have to be sensible to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) individuals would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to place big bets will never ever gamble legally.

Approval question

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

"Even though lots of people are associated with some sort of sports betting - it's still a controversial concern for many," says our unnamed punter.

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

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the idea having actually been endorsed by an official panel for the very first time, a minimum of a dispute has fired up around a subject - which until now was considered a taboo.