Howzat? The clamour to legalise sports betting 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 needing 17 runs to win versus Australia.

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

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

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

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

And a couple of minutes later on his forecast comes true, as India wins the match in a nail-biting surface.

"I have made $200 today," he states with a childlike glee.

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited wagering distributes grow in the country.

'Black money'

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And overseas wagering companies are using this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas companies.

"Legally you can get away [with this], as the law is ambiguous for online sports betting," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline gambling", done through call which control the market.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the performance 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 2 years after some players and team authorities were condemned of repairing parts of the match at the request of bookmakers.

The panel likewise argues that legalised sports betting will generate tax earnings for the exchequer that might amount 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 cash out my revenues, as long as I can bet openly," states our cricket gambler.

It would also open a huge service opportunity for licensed bookies and global online wagering companies to set up operations in India.

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

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

But many also think, that the taxes imposed on the bettor and the bookie will need to be reasonable to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited sports betting since (some) people would not want to leave an audit trail by entering the white market," states Mr Oborne.

He includes that individuals who use unaccounted money to position huge bets will never bet legally.

Approval question

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

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

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

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

Yet with the concept having been backed by a main panel for the very first time, a minimum of an argument has actually ignited around a subject - which until now was considered a taboo.