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 home situated in central Mumbai, a middle-aged guy is enjoying the video 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 contact the last 30 minutes - not to go over the match however to keep revising his bet.

Five minutes earlier his cash was on Australia, now as the Indian batsman prepares to face the last over he's altered his mind.

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

And a couple of minutes later his prediction comes to life, 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 expose his name as what he's doing is unlawful in India.

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

'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 money is directed towards cricket.

Without any legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can bank on anything related 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 stated to the taxman.

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

And offshore sports betting business are using this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas firms.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 been banned for 2 years after some gamers and team authorities were found guilty of fixing parts of the match at the wish of bookies.

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

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

"I don't mind paying some cash out my earnings, as long as I can gamble openly," says our cricket gambler.

It would also open a substantial business opportunity for certified bookies and international online wagering business to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by assisting make transactions associated with sports betting more transparent.

"If you work along with wagering companies, you will have a very efficient technique of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes levied on the bettor and the bookie will need to be affordable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal wagering due to the fact that (some) people would not wish to leave an audit path by getting in the white market," states Mr Oborne.

He adds that people who use unaccounted money to put huge bets will never ever bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a hard idea to offer.

"Although many individuals are included in some sort of sports betting - it's still a controversial concern for lots of," states our unnamed punter.

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

"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime soon."

Yet with the concept having actually been endorsed by an official panel for the very first time, at least an argument has actually fired up around a topic - which till now was thought about a taboo.