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 runs to win versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged male is viewing 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 made more than 10 contact the last 30 minutes - not to talk about the match but to keep revising his bet.

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

"I believe India is winning, make the change," he tells his bookie on the phone.

And a few minutes later his prediction comes true, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting of any kind is not allowed in India. Despite that, prohibited sports betting distributes thrive in the country.

'Black cash'

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

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

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

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law prohibiting internet gambling, there is nothing similar here.

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

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

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

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend changes 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 been banned for 2 years after some players and team officials were found guilty of fixing parts of the match at the behest of bookies.

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

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

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

It would likewise open a huge service opportunity for licensed bookies and global online wagering companies to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue numerous, by assisting make deals associated with gambling more transparent.

"If you work alongside wagering business, you will have a very reliable method of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of also believe, that the taxes levied on the gambler and the bookmaker will have to be reasonable to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) individuals wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to position big bets will never ever gamble lawfully.

Approval concern

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

"Despite the fact that many individuals are included in some sort of gaming - it's still a questionable concern 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 difficult 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 endorsed by a main panel for the very first time, at least an argument has actually ignited around a subject - which till now was considered a taboo.