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 go to win versus Australia.

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

He has actually made more than 10 calls in the last 30 minutes - not to go over the match however to keep revising his bet.

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

"I believe India is winning, make the change," he tells his bookmaker on the phone.

And a couple of minutes later his forecast 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 3 decades he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful sports betting syndicates thrive in the country.

'Black money'

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

With no legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

Most of these transactions include so-called "black money", which is cash not declared 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 forbiding internet sports betting, there is absolutely nothing similar here.

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

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

But in spite of this, it is "offline sports betting", done through phone calls which control the marketplace.

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 preferred sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance 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 been banned for two years after some gamers and group officials were discovered guilty of repairing parts of the match at the request of bookies.

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

Even bettors feel that legalising sports betting wagering is a relocation in the ideal direction.

"I do not mind paying some cash out my earnings, as long as I can bet publicly," states our cricket bettor.

It would also open a substantial service opportunity for licensed bookmakers and global online sports betting business to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by helping make transactions involved in gambling more transparent.

"If you work together with sports betting business, you will have an extremely reliable technique of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But many also believe, that the taxes levied on the gambler and the bookmaker will need to be sensible to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be unlawful sports betting due to the fact that (some) individuals would not want to leave an audit path by getting in the white market," says Mr Oborne.

He includes that people who utilize unaccounted cash to put big bets will never bet legally.

Approval question

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

"Even however lots of people are associated with some sort of gambling - it's still a controversial issue for numerous," says our unnamed punter.

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

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

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