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 versus Australia.

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

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

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

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

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

"I have made $200 today," he says with a childlike 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 illegal in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering distributes grow in the country.

'Black money'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can wager 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 cash not declared to the taxman.

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

And overseas 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 actually registered accounts with overseas companies.

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

But in spite of this, it is "offline gambling", done through call which dominate the market.

Calls for legalisation

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

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

Two franchises have actually been prohibited for 2 years after some gamers and group authorities were condemned of fixing parts of the match at the behest of bookmakers.

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

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

"I do not mind paying some money out my earnings, as long as I can gamble openly," says our cricket bettor.

It would likewise open a big service opportunity for licensed bookmakers and worldwide online sports betting companies to establish operations in India.

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

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

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

However, there are limitations.

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

He includes that people who utilize unaccounted money to put big bets will never ever bet lawfully.

Approval concern

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

"Even though lots of people are included in some sort of gaming - it's still a controversial issue for numerous," states our unnamed punter.

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

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

Yet with the concept having actually been endorsed by a main panel for the first time, at least a debate has actually sparked around a topic - which till now was thought about a taboo.