Howzat? The clamour to legalise sports betting 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 runs to win versus Australia.

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

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

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

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

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

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

For more than three decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting distributes prosper in the country.

'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 gambling cash is directed towards cricket.

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

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

The 1867 Public Gambling Act bars any type of gaming in India, however unlike in the US which has a law restricting web gaming, there is nothing comparable here.

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

Calls for legalisation

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

The Justice RM Lodha Commission was established 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 wagering scandal emerged.

Two franchises have been prohibited for two years after some gamers and group authorities were condemned of fixing parts of the match at the request of bookmakers.

The panel also argues that legalised wagering 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 ideal instructions.

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

It would also open a huge business chance for licensed bookies 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 many, by helping make deals included in sports betting more transparent.

"If you work alongside sports betting companies, you will have a really reliable approach of stamping out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous also believe, that the taxes imposed on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

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

He includes that people who utilize unaccounted money to position big bets will never ever gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a hard idea to sell.

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

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

"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 actually been endorsed by an official panel for the very first time, a minimum of a debate has sparked around a subject - which up until now was considered a taboo.