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 requiring 17 go to win versus Australia.

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

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

Five minutes previously his cash was on Australia, today as the Indian batsman prepares yourself to deal with the last over he's changed his mind.

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

And a few minutes later his prediction comes to life, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting of any kind is not allowed in India. Despite that, illegal sports betting syndicates flourish in the nation.

'Black cash'

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

Without any legal avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these deals involve so-called "black cash", which is cash not declared 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 internet sports betting, there is nothing similar here.

And overseas wagering companies are utilizing this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot people have actually registered accounts with overseas firms.

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

But regardless of this, it is "offline gambling", done through call which dominate 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 concept, stating it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest changes in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

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 revenues for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a relocation in the best direction.

"I do not mind paying some money out my revenues, as long as I can bet publicly," says our cricket gambler.

It would also open a substantial business chance for certified bookies and global online sports betting business to establish operations in India.

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

"If you work alongside wagering companies, you will have a very effective technique of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are constraints.

"Definitely there will be prohibited sports betting due to the fact that (some) people wouldn't desire to leave an audit path by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to put huge bets will never bet 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.

"Although numerous people are involved in some sort of gambling - it's still a controversial concern 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 in their territory.

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

Yet with the concept having actually been endorsed by a main panel for the very first time, a minimum of a debate has ignited around a topic - which previously was thought about a taboo.