Howzat? The clamour to legalise sports 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 central Mumbai, a middle-aged man is watching the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

Five minutes previously his cash was on Australia, today as the Indian batsman prepares to deal with the last over he's altered his mind.

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

And a few minutes later 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 childish glee.

For more than 3 decades 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 allowed in India. Despite that, illegal sports betting distributes grow in the country.

'Black cash'

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

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

The majority of these transactions include so-called "black cash", which is money not stated to the taxman.

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

And offshore wagering business are utilizing this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with overseas companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have actually been prohibited for two years after some gamers and group officials were condemned of repairing parts of the match at the behest of bookmakers.

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

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

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

It would also open a huge business opportunity for licensed bookmakers and worldwide online sports betting companies to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by assisting make transactions involved in sports betting more transparent.

"If you work along with wagering companies, you will have a very reliable method of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise think, that the taxes imposed on the bettor and the bookie will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) people would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted cash to put big bets will never ever bet legally.

Approval question

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

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

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

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

Yet with the concept having been backed by an official panel for the very first time, a minimum of a debate has actually fired up around a subject - which till now was thought about a taboo.