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 house located in central Mumbai, a middle-aged guy is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his ideal hand.

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

Five minutes previously his money was on Australia, now as the Indian batsman gets all set to face the last over he's changed his mind.

"I believe India is winning, make the modification," he informs his bookmaker 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 childlike glee.

For more than three 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 money'

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

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

Most of these transactions involve 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 gambling, there is nothing comparable here.

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

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

But in spite of this, it is "offline sports betting", done through telephone call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend 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 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 behest of bookies.

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

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

"I do not mind paying some money out my revenues, as long as I can gamble publicly," says our cricket bettor.

It would also open a huge service opportunity for certified bookies and global online sports betting business to establish operations in India.

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

"If you work along with wagering business, you will have a really effective technique of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise believe, that the taxes imposed on the bettor and the bookie will need to be sensible to make it appealing enough for them to gamble legally.

However, there are constraints.

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

He adds that people who utilize unaccounted cash to position big bets will never bet lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a tough idea to sell.

"Even though many individuals are included in some sort of sports betting - it's still a questionable issue for lots of," says our unnamed punter.

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

"The process is so long and difficult 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 actually been endorsed by an official panel for the very first time, a minimum of a dispute has fired up around a topic - which previously was considered a taboo.