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 house situated in central Mumbai, a middle-aged man is viewing the game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his best hand.

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

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

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

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

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

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

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, illegal sports betting distributes flourish in the nation.

'Black cash'

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

With no legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And offshore wagering business are using this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have actually signed up accounts with offshore firms.

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

But despite this, it is "offline sports betting", done through phone calls which dominate the market.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the idea, saying it would help clamp 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 regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

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

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

Even gamblers feel that legalising sports betting wagering is a move in the ideal direction.

"I don't mind paying some cash out my profits, as long as I can gamble publicly," states our cricket bettor.

It would likewise open a substantial service chance for licensed bookmakers and global online sports betting companies to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by helping make deals involved in sports betting more transparent.

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

But lots of also believe, 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 constraints.

"Definitely there will be illegal wagering due to the fact that (some) individuals would not wish to leave an audit path by getting in the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to position huge bets will never bet legally.

Approval question

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

"Despite the fact that lots of people are associated with some sort of gaming - it's still a questionable issue for many," states our unnamed punter.

And provided that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling 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 soon."

Yet with the concept having been backed by an official panel for the very first time, a minimum of a dispute has ignited around a subject - which previously was thought about a taboo.