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 requiring 17 go to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male 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.

He has made more than 10 calls in the last 30 minutes - not to go over the match but to keep modifying his bet.

Five minutes previously his money was on Australia, but 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 change," he informs his bookmaker on the phone.

And a couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.

"I have actually 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.

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

'Black money'

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

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

Most of these transactions involve so-called "black money", which is money not declared 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 gaming, there is absolutely nothing similar here.

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

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

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

Require 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 clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have actually been banned for 2 years after some players and group officials were discovered guilty of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will bring in tax revenues for the exchequer that might amount to $2bn a year.

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

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," says our cricket bettor.

It would likewise open a huge organization chance for certified bookies and worldwide online sports betting business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by assisting make transactions associated with gambling more transparent.

"If you work alongside sports betting companies, you will have a really efficient method of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes imposed on the gambler and the bookmaker will need to be sensible to make it attractive enough for them to bet legally.

However, there are constraints.

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

He adds that people who utilize unaccounted money to put big bets will never gamble legally.

Approval concern

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

"Although lots of people are involved in some sort of gambling - it's still a controversial problem for numerous," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their area.

"The procedure 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 idea having actually been backed by an official panel for the very first time, a minimum of a debate has ignited around a subject - which till now was considered a taboo.