Howzat? The clamour to legalise sports betting 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 guy is watching the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

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

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

"I think India is winning, make the change," he informs his bookmaker on the phone.

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

"I have 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 unlawful in India.

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

'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 money is directed towards cricket.

Without any legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can wager 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 cash not declared to the taxman.

The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law forbiding web gambling, there is nothing similar here.

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

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

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

The panel also argues that legalised wagering will generate tax profits for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a big company opportunity for certified bookies and worldwide online sports betting business to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work along with sports betting business, you will have an extremely reliable approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous also believe, that the taxes imposed on the gambler and the bookmaker will need to be reasonable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be unlawful wagering because (some) people wouldn't desire to leave an audit trail by entering the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to position huge bets will never ever 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.

"Despite the fact that numerous people are included in some sort of gambling - it's still a questionable problem for many," says our unnamed punter.

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

"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 idea having actually been endorsed by a main panel for the very first time, a minimum of an argument has sparked around a topic - which previously was thought about a taboo.