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 runs to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his best hand.

He has actually made more than 10 calls in the last 30 minutes - not to talk about the match however to keep modifying his bet.

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

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

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

"I have actually made $200 today," he states with a childlike 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 illegal in India.

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

'Black money'

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

With no legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law restricting internet gambling, there is absolutely nothing comparable here.

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

"Legally you can escape [with this], as the law is ambiguous for online gambling," states Mumbai- based lawyer HP Ranina.

But in spite of this, it is "offline gambling", done through phone calls which dominate the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up 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 sports betting scandal emerged.

Two franchises have been prohibited for two years after some players and team officials were condemned of fixing parts of the match at the behest of bookmakers.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the right instructions.

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

It would also open a huge organization opportunity for certified bookmakers and global online wagering companies to set up operations in India.

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

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

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

However, there are restrictions.

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

He includes that individuals who utilize unaccounted cash to put big bets will never gamble lawfully.

Approval concern

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

"Even though lots of people are involved in some sort of gambling - it's still a questionable issue for many," says our unnamed punter.

And given that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling in their territory.

"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this becoming a truth anytime soon."

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