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 versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged guy is watching the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

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

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

"I believe India is winning, make the modification," he tells his bookmaker on the phone.

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

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

For more than three decades he's been sports betting on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering distributes prosper in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's illegal 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 bet on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law prohibiting web gambling, there is absolutely nothing similar here.

And overseas wagering business are utilizing this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with offshore firms.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend 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 actually been banned for 2 years after some players and team authorities were condemned of repairing parts of the match at the wish of bookies.

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

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

"I do not mind paying some cash out my profits, as long as I can bet publicly," says our cricket gambler.

It would also open a substantial service opportunity for certified bookies and international online wagering companies to set up operations in India.

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

"If you work together with sports betting business, you will have a very efficient technique of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of also think, that the taxes levied on the gambler and the bookmaker will have to be reasonable to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) people would not desire to leave an audit path by going into the white market," says Mr Oborne.

He includes that people who use unaccounted money to place huge bets will never gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to create a new law, and politically this will be a difficult idea to offer.

"Even however many individuals are associated with some sort of gambling - it's still a questionable problem for numerous," states 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 procedure 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 backed by an official panel for the very first time, at least a debate has ignited around a topic - which till now was considered a taboo.