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 needing 17 go to win versus Australia.

In his two-bedroom home located 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 man.

He has actually made more than 10 contact the last 30 minutes - not to talk about the match but to keep revising his bet.

Five minutes previously his money was on Australia, but 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 comes to life, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he says with a childlike glee.

For more than 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited sports betting syndicates prosper 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 sports betting cash is directed towards cricket.

With no legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

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

And offshore wagering companies are using this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore companies.

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

But despite this, it is "offline gaming", done through call which dominate the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up 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 actually been banned for 2 years after some gamers and group officials were condemned of repairing parts of the match at the wish of bookies.

The panel also argues that legalised wagering will bring in tax revenues for the exchequer that might amount to $2bn a year.

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

"I do not mind paying some money out my profits, as long as I can bet openly," states our cricket gambler.

It would also open a huge organization chance for certified bookies and international online sports betting companies to establish operations in India.

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

"If you work together with wagering business, you will have a very efficient technique of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous 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 bet legally.

However, there are restrictions.

"Definitely there will be prohibited sports betting because (some) people would not wish to leave an audit path by entering the white market," states Mr Oborne.

He adds that people who use unaccounted money to position huge bets will never ever gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard concept to offer.

"Although lots of people are involved in some sort of gaming - it's still a controversial concern for numerous," says our unnamed punter.

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

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

Yet with the idea having actually been endorsed by an official panel for the very first time, at least a debate has sparked around a topic - which previously was thought about a taboo.