Howzat? The clamour to legalise sports betting wagering 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 go to win versus Australia.

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

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

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

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

And a couple of minutes later on his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childish 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 illegal in India.

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

'Black money'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting market is worth some $150bn a year. And much of that sports betting 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 related to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these transactions involve so-called "black cash", which is money 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 restricting web gambling, there is absolutely nothing comparable here.

And overseas wagering companies are utilizing this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has 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 preferred sport.

The Justice RM Lodha Commission was set up 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 wagering scandal came to light.

Two franchises have actually been prohibited for two years after some players and group officials were condemned of repairing parts of the match at the behest of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the right instructions.

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

It would also open a huge business opportunity for certified bookies and global online wagering companies to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue numerous, by assisting make deals included in sports betting more transparent.

"If you work alongside wagering business, you will have an extremely efficient approach of marking out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

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

However, there are limitations.

"Definitely there will be unlawful wagering because (some) individuals wouldn't desire to leave an audit trail by going into the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to put huge bets will never ever gamble lawfully.

Approval concern

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

"Even though lots of people are included in some sort of sports betting - it's still a questionable concern 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," says Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

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