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 needing 17 runs to win versus Australia.

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

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

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

"I think India is winning, make the modification," he tells 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 surface.

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

For more than three decades he's been wagering on cricket matches. We can't expose 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, prohibited wagering distributes thrive in the country.

'Black cash'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.

Most 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 sports betting in India, but unlike in the US which has a law restricting internet gaming, there is absolutely nothing similar here.

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

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

But despite this, it is "offline gambling", done through telephone 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 country's preferred 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 wagering scandal emerged.

Two franchises have actually been prohibited for 2 years after some players and group officials were found guilty of repairing parts of the match at the request of bookmakers.

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

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

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

It would also open a substantial business chance for certified bookmakers and worldwide online sports betting business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by assisting make deals involved in gambling more transparent.

"If you work along with sports betting business, you will have a very efficient approach of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

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

However, there are constraints.

"Definitely there will be illegal sports betting because (some) individuals would not want to leave an audit path by going into the white market," states Mr Oborne.

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

Approval question

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

"Although many individuals are included in some sort of sports betting - it's still a controversial concern for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their territory.

"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 first time, a minimum of a dispute has actually ignited around a subject - which up until now was thought about a taboo.