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 against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged guy is seeing the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right hand.

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

Five minutes previously his money was on Australia, now as the Indian batsman gets prepared to face the last over he's altered his mind.

"I think India is winning, make the change," 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 finish.

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

For more than three decades he's been banking 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 India. Despite that, illegal wagering syndicates prosper in the country.

'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 sports betting money is directed towards cricket.

Without any legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

Most of these transactions involve so-called "black money", which is money not stated to the taxman.

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

And offshore sports betting companies are utilizing this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was set up 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 been banned for two years after some gamers and team officials were discovered guilty of fixing parts of the match at the request of bookies.

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

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

"I don't mind paying some money out my revenues, as long as I can gamble openly," says our cricket gambler.

It would also open a substantial company chance for certified bookies and global online sports betting companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by helping make transactions associated with gambling more transparent.

"If you work together with wagering business, you will have a really efficient approach of stamping out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of also think, that the taxes imposed on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

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

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

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a tough concept to sell.

"Despite the fact that many individuals are involved in some sort of gaming - it's still a controversial problem for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will have to likewise pass a separate 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 ending up being a reality anytime quickly."

Yet with the idea having actually been endorsed by an official panel for the very first time, a minimum of a dispute has ignited around a subject - which till now was thought about a taboo.