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 needing 17 runs to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged guy is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right hand.

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

Five minutes previously his money was on Australia, now as the Indian batsman prepares to deal with the last over he's changed his mind.

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

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

"I have actually made $200 today," he says 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 illegal in India.

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

'Black cash'

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

With no legal opportunity, punters place 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.

Most of these deals involve so-called "black cash", which is money not stated to the taxman.

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

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

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to suggest 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 wagering scandal emerged.

Two franchises have been prohibited for two years after some players and team authorities were condemned of repairing parts of the match at the request of bookies.

The panel also 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 do not mind paying some cash out my earnings, as long as I can gamble publicly," states our cricket bettor.

It would likewise open a substantial business opportunity for licensed bookmakers and global online sports betting business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by helping make deals involved in gambling more transparent.

"If you work along with sports betting business, you will have an extremely effective method of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) people 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 position big bets will never bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a tough concept to sell.

"Even though lots of people are associated with some sort of gambling - it's still a questionable concern for lots of," states our unnamed punter.

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

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a reality anytime quickly."

Yet with the idea having been backed by a main panel for the first time, at least an argument has actually sparked around a subject - which previously was considered a taboo.