Howzat? The clamour to legalise sports betting wagering 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 requiring 17 runs to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged man is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right hand.

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

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

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

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

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

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

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

'Black cash'

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

Without any legal avenue, punters put 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 deals involve so-called "black cash", which is cash not declared to the taxman.

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

And overseas sports betting companies are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas companies.

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

But regardless of this, it is "offline sports betting", done through call which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the functioning of India's cricket regulatory 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 authorities were discovered guilty of fixing parts of the match at the wish 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 gamblers feel that legalising sports betting is a relocation in the best direction.

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

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

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

"If you work along with wagering companies, you will have an extremely efficient technique of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookie will need to be affordable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be illegal wagering since (some) individuals would not want to leave an audit path by entering the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to place huge bets will never ever 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 hard concept to offer.

"Even though many individuals are associated with some sort of gambling - it's still a controversial concern for numerous," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.

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

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