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 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is watching the game, nervously. He's sitting 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 hire the last 30 minutes - not to discuss the match however to keep modifying his bet.

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

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

And a few minutes later on his forecast comes real, as India wins the match in a nail-biting finish.

"I have 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.

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, illegal sports betting distributes prosper in the nation.

'Black money'

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

With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And overseas wagering business are utilizing this loophole to tempt Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have signed up accounts with overseas companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications 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 two years after some players and team authorities were found guilty of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax profits for the exchequer that might total up to $2bn a year.

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

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

It would likewise open a huge service chance for licensed bookies and international online wagering business to establish operations in India.

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

"If you work alongside wagering business, you will have a really effective method of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of also believe, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

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

He adds that people who utilize unaccounted cash to position big bets will never gamble legally.

Approval concern

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

"Despite the fact that lots of people are involved in some sort of gaming - it's still a questionable concern for numerous," states our unnamed punter.

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

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

Yet with the idea having actually been endorsed by an official panel for the very first time, a minimum of an argument has sparked around a subject - which previously was considered a taboo.