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 requiring 17 runs to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right hand.

He has made more than 10 calls in the last 30 minutes - not to go over the match however 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 altered his mind.

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

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

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

For more than three years 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 wagering of any kind is not permitted in India. Despite that, prohibited wagering distributes prosper in the country.

'Black money'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

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

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

"Legally you can get away [with this], as the law is ambiguous for online gaming," states Mumbai- based attorney 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 sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the idea, stating it would assist secure down on corruption in the nation's favourite 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 wagering scandal came to light.

Two franchises have actually been prohibited for two years after some players and team officials were condemned of repairing parts of the match at the behest of bookmakers.

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

Even gamblers feel that legalising sports betting is a move in the right instructions.

"I do not mind paying some cash out my profits, as long as I can bet publicly," says our cricket gambler.

It would also open a big company chance for certified bookies and global online wagering business to set up operations in India.

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

"If you work alongside wagering companies, you will have an extremely efficient method of marking out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But many likewise think, that the taxes levied on the gambler and the bookmaker will need to be affordable to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting because (some) people wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to put big bets will never bet legally.

Approval concern

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

"Even however lots of people are included in some sort of gambling - it's still a questionable concern for many," states 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 process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this becoming a reality anytime soon."

Yet with the concept having been backed by a main panel for the very first time, at least an argument has actually sparked around a topic - which until now was considered a taboo.