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 go to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his best hand.

He has made more than 10 calls in the last thirty 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 prepares to deal with the last over he's altered his mind.

"I believe India is winning, make the change," he informs his bookie on the phone.

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

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

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

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, unlawful sports betting distributes grow in the nation.

'Black money'

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

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

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

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

And offshore wagering business are using this loophole to tempt Indians. Even though there are no online sports betting operators based out of India, a lot people have actually registered accounts with overseas firms.

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

But despite this, it is "offline gaming", done through call which dominate the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, stating it would assist secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest 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 team officials were condemned of repairing parts of the match at the behest of bookies.

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

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

"I don't mind paying some cash out my profits, as long as I can bet openly," says our cricket gambler.

It would likewise open a huge organization opportunity for licensed bookies and global online wagering business to establish operations in India.

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

"If you work alongside sports betting companies, you will have a very effective approach of stamping out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise believe, that the taxes imposed on the gambler and the bookie will need to be sensible to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be prohibited wagering due to the fact that (some) individuals wouldn't want to leave an audit trail by entering the white market," states Mr Oborne.

He adds that individuals who use unaccounted money to put huge bets will never bet lawfully.

Approval question

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

"Despite the fact that many individuals are associated with some sort of gambling - it's still a controversial issue for numerous," says our unnamed punter.

And given that India has a federal structural - each state will have 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," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the concept having been endorsed by an official panel for the very first time, a minimum of a dispute has actually sparked around a topic - which till now was considered a taboo.