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 runs to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged guy is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

Five minutes previously his money was on Australia, and now as the Indian batsman gets ready to face the last over he's altered his mind.

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

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

"I have made $200 today," he states with a childlike 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 of any kind is not allowed India. Despite that, illegal wagering syndicates flourish in the nation.

'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 cash is directed towards cricket.

With no legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these transactions include so-called "black money", which is cash 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 internet sports betting, there is absolutely nothing similar here.

And offshore wagering companies are using this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have signed up accounts with offshore firms.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend 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 sports betting scandal emerged.

Two franchises have actually been banned for two years after some players and group authorities were found guilty of fixing parts of the match at the behest of bookmakers.

The panel likewise 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 wagering is a relocation in the right direction.

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

It would likewise open a huge organization chance for licensed bookies and global online sports betting companies to set up operations in India.

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

"If you work together with wagering companies, you will have a really efficient technique of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise think, that the taxes imposed on the bettor and the bookmaker will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be prohibited sports betting due to the fact that (some) people wouldn't desire to leave an audit trail by going into the white market," states Mr Oborne.

He includes that people who use unaccounted cash to position huge bets will never gamble legally.

Approval question

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

"Although lots of individuals are associated with some sort of gambling - it's still a questionable issue for lots of," says our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their area.

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

Yet with the idea having actually been backed by an official panel for the first time, at least a dispute has actually ignited around a topic - which up until now was thought about a taboo.