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 runs to win versus Australia.

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

He has made more than 10 hire the last 30 minutes - not to talk about the match however to keep revising his bet.

Five minutes previously his money was on Australia, and now as the Indian batsman prepares yourself to deal with 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 on his prediction comes to life, 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 decades he's been banking on cricket matches. We can't expose his name as what he's doing is unlawful in India.

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

'Black money'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting market deserves 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 bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest specific 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 sort of sports betting in India, but unlike in the US which has a law prohibiting internet gambling, there is absolutely nothing comparable here.

And overseas sports betting business are utilizing this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot people have actually signed up accounts with offshore companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications 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 been banned for two years after some gamers and group authorities were discovered guilty of repairing parts of the match at the request of bookies.

The panel also argues that legalised wagering will generate tax profits for the exchequer that could amount to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the right direction.

"I do not mind paying some money out my earnings, as long as I can bet openly," states our cricket gambler.

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

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

"If you work along with wagering business, you will have a really effective approach of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise think, that the taxes imposed on the gambler and the bookie will need to be affordable to make it attractive enough for them to gamble legally.

However, there are limitations.

"Definitely there will be prohibited wagering because (some) people would not want to leave an audit path by getting in the white market," states Mr Oborne.

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

Approval concern

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

"Despite the fact that lots of people are included in some sort of gaming - it's still a controversial problem for numerous," says our unnamed punter.

And given that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their area.

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the concept having actually been endorsed by a main panel for the first time, a minimum of a debate has fired up around a subject - which previously was considered a taboo.