Howzat? The clamour to legalise sports betting wagering 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 against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged man is seeing 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 30 minutes - not to talk about the match but to keep modifying his bet.

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

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

And a couple of minutes later his forecast comes to life, as India wins the match in a nail-biting finish.

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

For more than three years 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 enabled in India. Despite that, illegal wagering syndicates flourish in the country.

'Black money'

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

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

The majority of these transactions 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 forbiding web gambling, there is absolutely nothing comparable here.

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

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

But regardless of this, it is "offline gambling", done through phone calls which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have actually been prohibited 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 sports betting will bring in tax profits for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some cash out my profits, as long as I can gamble publicly," says our cricket gambler.

It would also open a huge company chance for licensed bookmakers and global online wagering business to set up operations in India.

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

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

But numerous likewise think, that the taxes imposed on the gambler and the bookmaker will need to be affordable 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) people would not desire to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted money to place big bets will never gamble lawfully.

Approval question

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

"Even however many individuals are involved in some sort of gambling - it's still a controversial problem for many," states our unnamed punter.

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

"The process is so long and tricky 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, a minimum of an argument has sparked around a topic - which till now was thought about a taboo.