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 requiring 17 runs to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is viewing the game, nervously. He's resting 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 thirty minutes - not to discuss the match however to keep revising his bet.

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

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

And a few minutes later on his prediction comes real, as India wins the match in a nail-biting finish.

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

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'Black cash'

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

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest 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 prohibiting web gambling, there is absolutely nothing comparable here.

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

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

But regardless of this, it is "offline gambling", done through phone calls which dominate the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established 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 came to light.

Two franchises have actually been banned for 2 years after some players and team officials were condemned of repairing parts of the match at the behest of bookies.

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

Even gamblers feel that legalising sports betting is a move in the best direction.

"I don't mind paying some cash out my revenues, as long as I can gamble openly," states our cricket bettor.

It would likewise open a big organization opportunity for licensed bookmakers and global online wagering business to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by assisting make transactions involved in sports betting more transparent.

"If you work along with sports betting business, you will have a really effective technique of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise believe, that the taxes imposed on the gambler and the bookmaker will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are constraints.

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

He adds that individuals who utilize unaccounted cash to put big bets will never ever bet legally.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard concept to offer.

"Despite the fact that lots of people are associated with some sort of gambling - it's still a questionable problem for many," states our unnamed punter.

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

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

Yet with the concept having actually been endorsed by an official panel for the first time, a minimum of an argument has sparked around a subject - which previously was thought about a taboo.