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

In his two-bedroom home located in main Mumbai, a middle-aged man is watching the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has made more than 10 employ the last thirty minutes - not to talk about the match but to keep revising his bet.

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

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

And a couple of minutes later his forecast comes true, as India wins the match in a nail-biting surface.

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

For more than 3 years he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful sports betting distributes thrive in the country.

'Black money'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

The 1867 Public Gambling Act bars any kind of gaming in India, but unlike in the US which has a law forbiding web gaming, there is nothing similar here.

And overseas wagering companies are utilizing this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas firms.

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

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, saying it would help clamp down on corruption in the nation's favourite sport.

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

Two franchises have actually been banned for 2 years after some gamers and group officials were condemned of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised wagering will bring in tax revenues for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the right direction.

"I don't mind paying some cash out my revenues, as long as I can bet publicly," states our cricket gambler.

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

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

"If you work alongside wagering 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 also think, that the taxes imposed on the bettor and the bookmaker will have to be affordable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) people wouldn't wish to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to position huge bets will never ever gamble lawfully.

Approval question

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 idea to offer.

"Even however many individuals are included in some sort of sports betting - it's still a controversial problem for numerous," states 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 in their territory.

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

Yet with the idea having been backed by an official panel for the very first time, a minimum of a debate has sparked around a topic - which previously was considered a taboo.