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 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone 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 revising his bet.

Five minutes previously his cash was on Australia, but now as the Indian batsman prepares yourself to face the last over he's altered his mind.

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

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

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

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Besides horse racing, sports betting wagering of any kind is not enabled in India. Despite that, illegal sports betting syndicates prosper in the nation.

'Black money'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can wager 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 type of gambling in India, but unlike in the US which has a law forbiding web gambling, there is absolutely nothing comparable here.

And overseas sports betting companies are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with overseas companies.

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

But regardless of this, it is "offline gambling", done through telephone call which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend 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 two years after some players and group authorities were discovered guilty of fixing parts of the match at the wish of bookmakers.

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

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

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

It would likewise open a huge service opportunity for licensed bookies and global online wagering business to establish operations in India.

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

"If you work together with sports betting business, you will have a very reliable technique of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are constraints.

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

He adds that individuals who utilize unaccounted money to position big bets will never bet lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a tough idea to offer.

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable problem for numerous," 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 gambling in their area.

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

Yet with the concept having actually been backed by an official panel for the very first time, at least a debate has actually sparked around a topic - which up until now was considered a taboo.