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 needing 17 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man 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 actually made more than 10 contact the last 30 minutes - not to discuss the match however to keep modifying his bet.

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

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

And a few minutes later on his forecast comes to life, as India wins the match in a nail-biting surface.

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

For more than 3 decades he's been wagering 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 enabled in India. Despite that, unlawful wagering distributes thrive in the nation.

'Black cash'

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 avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And overseas sports betting business are utilizing 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 signed up accounts with overseas firms.

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

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

Require legalisation

The to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to recommend 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 wagering scandal emerged.

Two franchises have been banned for two years after some players and group authorities were discovered guilty of repairing parts of the match at the wish of bookies.

The panel likewise argues that legalised sports betting will generate tax profits for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the best direction.

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

It would also open a huge organization chance for licensed bookmakers and global online sports betting companies to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by assisting make transactions included in sports betting more transparent.

"If you work along with wagering business, you will have an extremely reliable approach of marking out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise believe, that the taxes levied on the gambler and the bookie will have to be affordable to make it appealing enough for them to bet lawfully.

However, there are restrictions.

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

He adds that individuals who utilize unaccounted cash to place huge bets will never gamble lawfully.

Approval concern

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

"Although lots of people are included in some sort of sports betting - it's still a controversial problem for many," states our unnamed punter.

And provided that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their area.

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this becoming a reality anytime soon."

Yet with the idea having been backed by a main panel for the first time, a minimum of a dispute has ignited around a topic - which till now was thought about a taboo.