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 go to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged male is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his best hand.

He has made more than 10 calls in the last 30 minutes - not to discuss the match but to keep revising his bet.

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

"I think 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 surface.

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

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

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited wagering syndicates prosper in the nation.

'Black cash'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest specific run scorer.

Most of these transactions involve 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 restricting internet gaming, there is absolutely nothing comparable here.

And overseas wagering companies are using this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore companies.

"Legally you can escape [with this], as the law is uncertain for online gambling," says Mumbai- based lawyer HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been banned for two years after some gamers and group authorities were found guilty of fixing parts of the match at the request of bookies.

The panel likewise argues that legalised sports betting will generate tax incomes for the exchequer that could total up to $2bn a year.

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

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

It would likewise open a substantial organization opportunity for certified bookmakers and worldwide online wagering business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with gambling more transparent.

"If you work alongside wagering companies, you will have an extremely effective method of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful wagering because (some) people would not desire to leave an audit path by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to place huge bets will never gamble legally.

Approval concern

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

"Even however lots of individuals are associated with some sort of sports betting - it's still a questionable concern for many," says our unnamed punter.

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

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

Yet with the idea having been endorsed by a main panel for the very first time, at least a dispute has actually ignited around a subject - which previously was thought about a taboo.