Howzat? The clamour to legalise sports betting 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 runs to win versus Australia.

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

He has made more than 10 employ the last 30 minutes - not to go over the match but to keep modifying his bet.

Five minutes previously his money was on Australia, 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 change," he tells his bookie on the phone.

And a couple of minutes later on his prediction 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 three years he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting wagering of any kind is not permitted in India. Despite that, prohibited sports betting distributes prosper in the country.

'Black cash'

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

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

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

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

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

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the performance 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 2 years after some players and group officials were condemned of fixing parts of the match at the request of bookies.

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

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

"I do not mind paying some cash out my earnings, as long as I can gamble openly," states our cricket gambler.

It would also open a huge business chance for certified bookmakers and international online wagering companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.

"If you work together with sports betting companies, you will have an extremely efficient method of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But many likewise think, that the taxes imposed on the bettor and the bookie will have to be affordable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited wagering due to the fact that (some) people would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to position big bets will never gamble lawfully.

Approval question

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

"Although lots of people are included in some sort of gambling - it's still a controversial issue for lots of," states 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 procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a reality anytime quickly."

Yet with the idea having been backed by a main panel for the very first time, a minimum of a dispute has ignited around a subject - which until now was considered a taboo.