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 versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right hand.

He has actually made more than 10 hire the last thirty minutes - not to discuss the match however to keep modifying his bet.

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

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

And a few minutes later on his forecast 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 years he's been wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

Other than horse racing, sports wagering of any kind is not allowed India. Despite that, illegal wagering distributes flourish in the country.

'Black cash'

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 money is directed towards cricket.

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

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

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

And overseas wagering business are utilizing this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot individuals have registered accounts with offshore firms.

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

But regardless of this, it is "offline sports betting", done through phone calls which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulative 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 banned for 2 years after some gamers and group officials were found guilty of repairing parts of the match at the wish of bookies.

The panel also argues that legalised sports betting will bring in tax profits for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting is a relocation in the best direction.

"I do not mind paying some money out my revenues, as long as I can gamble openly," says our cricket gambler.

It would also open a substantial service chance for licensed bookmakers and international online wagering companies to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by assisting make deals associated with gambling more transparent.

"If you work along with wagering companies, you will have an extremely efficient technique of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise believe, that the taxes levied on the gambler and the bookie will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be illegal wagering because (some) individuals wouldn't desire to leave an audit path by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted money to put big bets will never gamble lawfully.

Approval question

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

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable problem for many," states our unnamed punter.

And provided that India has a federal structural - each state will have to also pass a separate law to legalise sports betting gambling in their area.

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

Yet with the idea having actually been endorsed by an official panel for the first time, a minimum of a debate has sparked around a topic - which up until now was thought about a taboo.