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 versus Australia.

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

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

Five minutes previously his money was on Australia, and now as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I think India is winning, make the change," he informs his bookmaker on the phone.

And a few minutes later on his forecast comes true, as India wins the match in a nail-biting surface.

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

For more than 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

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

'Black money'

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

Without any legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And offshore sports betting business are using this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with overseas firms.

"Legally you can get away [with this], as the law is uncertain for online sports betting," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline gaming", done through telephone call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest 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 wagering scandal came to light.

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

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

Even gamblers feel that legalising sports betting wagering is a relocation in the ideal direction.

"I do not mind paying some cash out my earnings, as long as I can bet openly," states our cricket bettor.

It would likewise open a huge company 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 many, by assisting make deals associated with gambling more transparent.

"If you work along with wagering companies, you will have an extremely efficient method of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookmaker will have to be reasonable to make it appealing enough for them to gamble legally.

However, there are restrictions.

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

He adds that people who use unaccounted cash to position big bets will never ever bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a difficult idea to offer.

"Despite the fact that lots of people are included in some sort of sports betting - it's still a questionable problem for lots of," 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 challenging that it will take years," states Mr Ranina."That's why, we are cynical about this coming true 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 thought about a taboo.