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 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right hand.

He has made more than 10 contact the last thirty minutes - not to discuss the match however to keep modifying his bet.

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

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

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

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

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

Other than horse racing, sports betting wagering of any kind is not permitted in India. Despite that, prohibited sports betting syndicates grow in the nation.

'Black money'

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 gambling money is directed towards cricket.

Without any legal avenue, punters place bets using 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.

Most of these deals involve so-called "black money", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law forbiding internet sports betting, there is nothing comparable here.

And overseas wagering companies are utilizing this loophole to tempt Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore firms.

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

But despite this, it is "offline sports betting", done through telephone call which control the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated 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 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 prohibited for two years after some players and group officials were found guilty of fixing parts of the match at the request of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax incomes for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a substantial company opportunity for licensed bookies and worldwide online wagering companies to set up operations in India.

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

"If you work alongside sports betting business, you will have a very efficient method of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But many also believe, that the taxes imposed on the bettor and the bookmaker will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals would not desire to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to place big bets will never ever gamble legally.

Approval concern

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

"Even though lots of people are associated with some sort of sports betting - it's still a questionable problem for numerous," states our unnamed punter.

And given that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling in their territory.

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

Yet with the concept having been endorsed by an official panel for the very first time, at least an argument has fired up around a subject - which previously was considered a taboo.