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 home located in main Mumbai, a middle-aged man is enjoying the 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 employ the last 30 minutes - not to talk about the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman prepares to deal with 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 his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childlike 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 prohibited in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting distributes grow in the nation.

'Black money'

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.

Without any legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any type of gaming in India, however unlike in the US which has a law restricting web sports betting, there is absolutely nothing similar 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 people have registered accounts with offshore companies.

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

But despite this, it is "offline gambling", done through call which control the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, saying it would assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest changes in the performance 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 two years after some gamers and group officials were condemned of fixing parts of the match at the request of bookmakers.

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

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

"I do not mind paying some money out my earnings, as long as I can bet openly," states our cricket bettor.

It would also open a huge business chance for licensed bookies and global online sports betting business to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue numerous, by assisting make transactions involved in sports betting more transparent.

"If you work together with wagering companies, you will have a really effective approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But many likewise believe, that the taxes levied on the gambler and the bookie will need to be sensible to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be prohibited sports betting since (some) people would not desire to leave an audit path by going into the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to put huge bets will never ever bet lawfully.

Approval question

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.

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

And considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting 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 ending up being a truth anytime soon."

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