Howzat? The clamour to legalise sports betting 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 house situated in main Mumbai, a middle-aged man is enjoying the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right hand.

He has made more than 10 contact the last 30 minutes - not to go over the match however to keep revising his bet.

Five minutes previously his cash was on Australia, and now as the Indian batsman prepares to face 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 couple of minutes later his prediction 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 years he's been wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

Besides horse racing, sports betting of any kind is not allowed in India. Despite that, illegal wagering syndicates grow in the country.

'Black cash'

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

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these transactions include so-called "black cash", 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 forbiding internet gaming, there is nothing similar here.

And offshore sports betting business are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

"Legally you can get away [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 telephone call which dominate the market.

Calls for legalisation

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

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

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

The panel also argues that legalised sports betting will bring in tax incomes for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a big company opportunity for licensed bookmakers and international online wagering business to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by assisting make transactions associated with gambling more transparent.

"If you work alongside wagering business, you will have an extremely effective approach of marking out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes imposed on the bettor and the bookie will need to be sensible to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited wagering due to the fact that (some) individuals would not want to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to put huge bets will never ever gamble lawfully.

Approval question

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

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

And considered that India has a federal structural - each state will have to also pass a different law to legalise sports betting 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 truth anytime soon."

Yet with the concept having actually been backed by a main panel for the very first time, at least a dispute has sparked around a topic - which previously was thought about a taboo.