Howzat? The clamour to legalise sports betting 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 against Australia.

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

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

Five minutes earlier his cash was on Australia, however now as the Indian batsman prepares to deal with the last over he's altered his mind.

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

And a couple of minutes later his prediction comes true, 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 three decades he's been sports betting on cricket matches. We can't expose his name as what he's doing is illegal in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting distributes thrive in the nation.

'Black cash'

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

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

Most of these transactions include so-called "black money", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law restricting web gambling, there is absolutely nothing comparable here.

And offshore sports betting companies are utilizing this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with offshore companies.

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

But regardless of this, it is "offline gambling", done through 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, saying it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to suggest 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 been banned for two years after some players and group authorities were found guilty of repairing parts of the match at the behest of bookies.

The panel also argues that legalised sports betting will bring in tax earnings for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting is a move in the right instructions.

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

It would likewise open a huge service opportunity for licensed bookies and international online sports betting business to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by assisting make transactions included in sports betting more transparent.

"If you work together with sports betting business, you will have a very efficient method of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are restrictions.

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

He includes that individuals who use unaccounted money to place big bets will never ever bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a tough idea to offer.

"Even though lots of people are included in some sort of sports betting - it's still a questionable issue for lots of," states our unnamed punter.

And considered 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 process is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a reality anytime soon."

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