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 against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged guy 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 actually made more than 10 contact the last 30 minutes - not to talk about the match but to keep revising his bet.

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

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

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

"I have actually 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 prohibited in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal wagering distributes thrive in the country.

'Black cash'

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

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

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

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

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have been prohibited for 2 years after some players and team officials were condemned of repairing 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 might amount to $2bn a year.

Even gamblers feel that legalising sports betting is a relocation in the .

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

It would likewise open a big organization opportunity for licensed bookies and global online sports betting business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by helping make deals associated with sports betting more transparent.

"If you work along with wagering business, you will have an extremely effective approach of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise believe, that the taxes levied on the bettor and the bookie will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be unlawful wagering due to the fact that (some) people wouldn't desire to leave an audit trail by going into the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to put huge bets will never gamble 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 sell.

"Despite the fact that many individuals are included in some sort of gambling - it's still a controversial issue for numerous," states our unnamed punter.

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

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

Yet with the idea having actually been endorsed by a main panel for the very first time, at least a debate has actually sparked around a topic - which till now was considered a taboo.