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 male is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his best hand.

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

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

"I think India is winning, make the change," he tells his bookie on the phone.

And a few minutes later his prediction comes to life, 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 wagering on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting wagering of any kind is not allowed 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 illegal sports betting wagering market deserves some $150bn a year. And much of that gambling money is directed towards cricket.

With no legal opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest individual run scorer.

The majority of these transactions include so-called "black cash", which is cash not stated 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 absolutely nothing comparable here.

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

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

But in spite 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 actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend changes in the functioning of India's cricket regulatory 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 prohibited for two years after some gamers and group authorities were discovered guilty of fixing parts of the match at the behest of bookies.

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

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

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

It would likewise open a substantial company opportunity for licensed bookies and worldwide online sports betting companies to set up operations in India.

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

"If you work alongside wagering business, you will have a very effective method of marking out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are restrictions.

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

He includes that people who use unaccounted cash to place big bets will never bet legally.

Approval question

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

"Even though lots of people are included in some sort of gaming - it's still a questionable concern for lots of," says our unnamed punter.

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

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

Yet with the concept having been backed by a main panel for the very first time, at least a debate has fired up around a subject - which until now was considered a taboo.