Howzat? The clamour to legalise sports betting 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 against Australia.

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

He has actually made more than 10 employ the last thirty minutes - not to go over the match however to keep modifying his bet.

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

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

And a few minutes later on his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

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

Aside from horse racing, sports betting wagering 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 cash is directed towards cricket.

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

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

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

And offshore wagering business are using this loophole to entice 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 firms.

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

But in spite of this, it is "offline gambling", done through call which dominate the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications 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 emerged.

Two franchises have been prohibited for two years after some gamers and team authorities were found guilty of repairing parts of the match at the behest of bookies.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that might total up to $2bn a year.

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

"I do not mind paying some money out my revenues, as long as I can gamble publicly," states our cricket gambler.

It would also open a huge organization opportunity for certified bookmakers and international online wagering business to set up operations in India.

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

"If you work along with sports betting business, you will have a really effective method of marking out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous also believe, that the taxes levied on the bettor and the bookie will need to be affordable to make it appealing enough for them to bet legally.

However, there are constraints.

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

He adds that people who use unaccounted cash to position big bets will never bet lawfully.

Approval concern

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

"Although many individuals are associated with some sort of sports betting - it's still a questionable concern for lots of," states our unnamed punter.

And provided that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling in their territory.

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

Yet with the idea having been backed by a main panel for the very first time, a minimum of an argument has ignited around a subject - which up until now was considered a taboo.