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 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is enjoying the game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his ideal hand.

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

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

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

And a few minutes later 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 illegal in India.

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

'Black cash'

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

Without any legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

The majority of these transactions include so-called "black money", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any sort of gambling in India, but unlike in the US which has a law restricting web sports betting, there is absolutely nothing comparable here.

And offshore sports betting companies are utilizing this loophole to draw Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with overseas companies.

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

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

Calls for 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 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 emerged.

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

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

Even gamblers feel that legalising sports betting wagering is a move in the best instructions.

"I don't mind paying some cash out my revenues, as long as I can bet publicly," says our cricket bettor.

It would likewise open a big company opportunity for licensed bookies and global online sports betting business to set up operations in India.

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

"If you work along with sports betting companies, you will have a very reliable method of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are constraints.

"Definitely there will be prohibited sports betting since (some) individuals would not wish to leave an audit path by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted money to put huge bets will never gamble legally.

Approval question

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

"Although lots of people are involved in some sort of sports betting - it's still a questionable problem for many," 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 gambling in their area.

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

Yet with the idea having actually been backed by a main panel for the very first time, at least a debate has sparked around a topic - which until now was considered a taboo.