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 needing 17 runs to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is seeing 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 thirty minutes - not to go over the match however to keep modifying his bet.

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

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

And a few minutes later on his prediction comes true, as India wins the match in a nail-biting surface.

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

For more than 3 years he's been banking on cricket matches. We can't reveal 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 sports betting distributes 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 money is directed towards cricket.

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these transactions involve 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, but unlike in the US which has a law forbiding web sports betting, there is absolutely nothing similar here.

And overseas sports betting business are utilizing this loophole to lure Indians. Although there are no online wagering 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 uncertain for online sports betting," says Mumbai- based attorney HP Ranina.

But despite this, it is "offline sports betting", done through call which control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the functioning 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 banned for two years after some players and group authorities were condemned of repairing parts of the match at the request of bookmakers.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that might 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 likewise open a substantial company opportunity for certified bookies and worldwide online wagering business to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals associated with gambling more transparent.

"If you work together with wagering business, you will have a very effective method of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes levied on the gambler and the bookie will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are limitations.

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

He adds that individuals who use unaccounted cash to place huge bets will never bet lawfully.

Approval concern

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

"Although numerous individuals are involved in some sort of gaming - it's still a controversial problem 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 challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having been backed by a main panel for the very first time, at least a debate has actually fired up around a subject - which till now was considered a taboo.