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 situated in central Mumbai, a middle-aged male is watching the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

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

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

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

"I have made $200 today," he says with a childish 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.

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, prohibited sports betting distributes grow in the country.

'Black money'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet 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 cash not stated to the taxman.

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

And offshore wagering business are using this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore companies.

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

But in spite of this, it is "offline gambling", done through call which control 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 assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest 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 wagering scandal came to light.

Two franchises have been prohibited for 2 years after some gamers and group officials were condemned of repairing parts of the match at the behest of bookies.

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

Even bettors feel that legalising sports betting is a relocation in the right instructions.

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

It would likewise open a big organization chance for certified bookmakers and worldwide online sports betting companies to set up operations in India.

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

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

But numerous likewise believe, that the taxes imposed on the bettor and the bookie will have to be sensible to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful wagering due to the fact that (some) people wouldn't want to leave an audit trail by going into the white market," states Mr Oborne.

He adds that people who utilize unaccounted cash to place huge bets will never gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a difficult concept to offer.

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

And offered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their area.

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a reality anytime quickly."

Yet with the concept having been endorsed by an official panel for the very first time, at least an argument has ignited around a topic - which previously was thought about a taboo.