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 requiring 17 go to win versus Australia.

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

He has actually made more than 10 employ the last 30 minutes - not to talk about the match however to keep modifying his bet.

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

"I think India is winning, make the modification," he tells his bookie on the phone.

And a couple of minutes later on his prediction becomes a reality, 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 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting syndicates flourish in the nation.

'Black cash'

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 money is directed towards cricket.

Without any legal avenue, punters position 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 greatest private run scorer.

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

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

And overseas wagering business are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have registered accounts with offshore firms.

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

But in spite of this, it is "offline gaming", done through call 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 clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest changes in the functioning 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 gamers and team officials were condemned of fixing parts of the match at the request of bookies.

The panel also 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 relocation in the best instructions.

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

It would also open a substantial business opportunity for licensed bookmakers and global online wagering business to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make deals associated with gambling more transparent.

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

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

However, there are limitations.

"Definitely there will be prohibited wagering since (some) people would not wish to leave an audit path by getting in the white market," says Mr Oborne.

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

Approval question

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

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

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

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

Yet with the concept having been backed by an official panel for the very first time, at least a dispute has ignited around a topic - which previously was considered a taboo.