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 needing 17 go to win against Australia.

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

He has actually made more than 10 employ the last 30 minutes - not to go over the match but to keep modifying his bet.

Five minutes previously his money was on Australia, today as the Indian batsman gets prepared to face the last over he's altered 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 real, as India wins the match in a nail-biting finish.

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

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

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering syndicates thrive in the country.

'Black money'

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

With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest individual run scorer.

The majority of these deals include so-called "black cash", which is money not stated 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 gambling, there is absolutely nothing similar here.

And overseas sports betting companies are using this loophole to tempt Indians. Although there are no online wagering operators based out of India, a lot people have signed up accounts with overseas firms.

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

But despite this, it is "offline gambling", done through phone calls which dominate the market.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, stating it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend 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 came to light.

Two franchises have actually been banned for two years after some players and team officials were found guilty of repairing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax incomes for the exchequer that could amount to $2bn a year.

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

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

It would also open a big organization chance for certified bookies and international online sports betting companies to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by assisting make deals involved in gambling more transparent.

"If you work along with wagering business, you will have an extremely effective approach of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise believe, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be prohibited sports betting because (some) people would not desire to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted cash to place big bets will never ever bet lawfully.

Approval question

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

"Although many individuals are associated with some sort of gambling - it's still a controversial issue for lots of," 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 gambling in their area.

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

Yet with the idea having been backed by an official panel for the very first time, a minimum of a debate has actually fired up around a topic - which until now was considered a taboo.