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 go to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right hand.

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

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

"I think India is winning, make the modification," he tells his bookie on the phone.

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

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

For more than 3 years 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 of any kind is not enabled in India. Despite that, prohibited sports betting syndicates grow in the country.

'Black cash'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law forbiding internet gambling, there is nothing comparable here.

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

"Legally you can escape [with this], as the law is ambiguous for online gambling," states Mumbai- based lawyer HP Ranina.

But in spite of this, it is "offline gaming", done through phone calls which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend changes 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 emerged.

Two franchises have been banned for two years after some players and team officials were condemned of fixing parts of the match at the behest of bookmakers.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the right instructions.

"I don't mind paying some money out my profits, as long as I can gamble publicly," states our cricket bettor.

It would likewise open a substantial service opportunity for licensed bookies and international online wagering companies to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue lots of, by assisting make deals associated with gambling more transparent.

"If you work along with wagering business, you will have a really efficient approach of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But many also believe, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering since (some) people wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted cash to position big bets will never ever gamble lawfully.

Approval question

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

"Even though many individuals are included in some sort of gambling - it's still a questionable problem for numerous," says our unnamed punter.

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

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this becoming a truth anytime quickly."

Yet with the concept having actually been backed by an official panel for the very first time, a minimum of a debate has sparked around a subject - which previously was considered a taboo.