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 house located in main Mumbai, a middle-aged male is watching the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his best hand.

He has actually made more than 10 employ the last thirty minutes - not to talk about the match however to keep revising his bet.

Five minutes previously his money was on Australia, today as the Indian batsman gets all set to face the last over he's altered his mind.

"I believe India is winning, make the modification," he tells his bookmaker on the phone.

And a couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

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

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

'Black cash'

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

Without any legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

The majority of these deals 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 restricting internet gaming, there is nothing comparable here.

And offshore wagering companies are using this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

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

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

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 assist secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to recommend 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 wagering scandal emerged.

Two franchises have been prohibited for 2 years after some players and team authorities were discovered guilty of fixing parts of the match at the behest of bookmakers.

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

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

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

It would likewise open a big service opportunity for licensed bookmakers and international 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 associated with gambling more transparent.

"If you work together with wagering business, you will have a very effective technique of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are constraints.

"Definitely there will be illegal wagering because (some) people would not desire to leave an audit trail 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 to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a difficult concept to offer.

"Although many individuals are involved in some sort of gambling - it's still a questionable problem for lots of," says 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 area.

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

Yet with the idea having been backed by an official panel for the very first time, at least an argument has actually ignited around a topic - which till now was thought about a taboo.