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 go to win versus Australia.

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

He has 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, today 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 his forecast becomes a reality, 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 3 years 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 cash'

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 gambling money is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law forbiding internet gaming, there is nothing similar here.

And overseas wagering business are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore firms.

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

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

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, stating it would help clamp 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 been prohibited for two years after some players and group authorities were found guilty of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised sports betting will bring in tax profits for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.

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

It would also open a huge organization chance for certified bookmakers and global online wagering companies to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by helping make transactions included in sports betting more transparent.

"If you work alongside sports betting companies, you will have a very reliable approach of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also believe, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting because (some) individuals wouldn't wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted money to put big bets will never gamble lawfully.

Approval concern

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

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

And offered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling in their territory.

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

Yet with the idea having actually been endorsed by an official panel for the very first time, at least a dispute has actually sparked around a subject - which up until now was thought about a taboo.