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 versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his best hand.

He has actually made more than 10 contact the last thirty minutes - not to discuss the match however to keep modifying his bet.

Five minutes previously his cash was on Australia, today as the Indian batsman gets all set to deal with 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 his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

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

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

'Black money'

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 gambling cash is directed towards cricket.

With no legal avenue, punters put 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 individual run scorer.

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

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

And offshore wagering companies are using this loophole to draw Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

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

But regardless of this, it is "offline gaming", done through phone calls which control the market.

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 clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend changes 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 gamers and team authorities were condemned of repairing parts of the match at the request of bookies.

The panel likewise argues that legalised sports betting will generate tax earnings for the exchequer that might total up to $2bn a year.

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

"I do not mind paying some money out my profits, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a big company opportunity for certified bookmakers and global online wagering companies to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by helping make deals included in sports betting more transparent.

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

But many likewise believe, that the taxes levied on the gambler and the bookie will have to be sensible to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) people would not want to leave an audit trail by going into the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to position huge bets will never gamble lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a hard idea to offer.

"Despite the fact that many individuals are included in some sort of sports betting - it's still a questionable concern for numerous," says our unnamed punter.

And offered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their area.

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

Yet with the concept having been backed by a main panel for the first time, a minimum of a dispute has actually ignited around a topic - which up until now was thought about a taboo.