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 needing 17 go to win against Australia.

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

He has actually made more than 10 contact the last thirty minutes - not to talk about the match but to keep modifying his bet.

Five minutes previously his money was on Australia, today as the Indian batsman prepares yourself to deal with the last over he's changed his mind.

"I believe India is winning, make the change," he tells his bookmaker on the phone.

And a couple of minutes later on his forecast comes to life, 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 wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful sports betting distributes thrive in the nation.

'Black cash'

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 sports betting money is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And offshore wagering business are utilizing this loophole to draw Indians. Even though there are no online sports betting 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 gambling," says Mumbai- based attorney HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was established to suggest changes in the performance 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 been banned for two years after some players and group authorities were discovered guilty of repairing parts of the match at the request of bookies.

The panel likewise argues that legalised sports betting will generate tax revenues 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 cash out my revenues, as long as I can gamble openly," says our cricket bettor.

It would likewise open a big company chance for certified bookmakers and worldwide online wagering business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by helping make transactions associated with sports betting more transparent.

"If you work along with wagering companies, you will have a very effective technique of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of also think, that the taxes levied on the gambler and the bookmaker will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering because (some) individuals would not desire to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to put huge bets will never bet 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 hard idea to sell.

"Even however many individuals are included in some sort of sports betting - it's still a controversial issue for numerous," states our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their territory.

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

Yet with the concept having actually been endorsed by an official panel for the very first time, at least an argument has fired up around a subject - which previously was considered a taboo.