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 runs to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is enjoying the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, and now as the Indian batsman gets ready to deal with the last over he's altered his mind.

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

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

"I have made $200 today," he says with a childish glee.

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

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, illegal wagering syndicates grow in the nation.

'Black money'

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

With no legal opportunity, punters position 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 greatest individual run scorer.

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

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

And offshore wagering business are using this loophole to lure Indians. Although there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest modifications 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 came to light.

Two franchises have actually been prohibited for 2 years after some players and group authorities were condemned of fixing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting wagering is a relocation in the right instructions.

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

It would likewise open a huge company opportunity for licensed bookies and international online wagering companies to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by assisting make deals associated with gambling more transparent.

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

But many also think, that the taxes levied on the bettor and the bookie will have to be sensible to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be prohibited wagering due to the fact that (some) individuals would not wish to leave an audit trail by going into the white market," says Mr Oborne.

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

Approval question

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

"Even though many individuals are included in some sort of gaming - it's still a controversial issue for numerous," states our unnamed punter.

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

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this becoming a truth anytime soon."

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