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 against Australia.

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

He has actually made more than 10 employ the last thirty minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman prepares yourself to face the last over he's changed his mind.

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

And a couple of minutes later his prediction comes true, 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 years he's been banking on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, prohibited wagering syndicates thrive in the nation.

'Black money'

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 gambling cash is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And offshore sports betting business are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas firms.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulatory 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 two years after some gamers and group authorities were found guilty of fixing parts of the match at the wish of bookies.

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

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

"I don't mind paying some money out my earnings, as long as I can bet publicly," says our cricket bettor.

It would also open a substantial company opportunity for certified bookmakers and international online wagering companies to set up 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 together with sports betting companies, you will have a very efficient approach of marking out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of also think, that the taxes imposed on the bettor and the bookie will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering due to the fact that (some) individuals wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to place big bets will never bet lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a difficult concept to sell.

"Although lots of individuals are involved in some sort of sports betting - it's still a questionable issue for numerous," states our unnamed punter.

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

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

Yet with the idea having been backed by a main panel for the first time, at least a debate has actually sparked around a subject - which previously was considered a taboo.