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 needing 17 runs to win against Australia.

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

He has made more than 10 contact the last thirty minutes - not to talk about the match however to keep revising his bet.

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

"I believe India is winning, make the modification," he informs his bookie on the phone.

And a few minutes later his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have 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 illegal in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering distributes grow in the nation.

'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 money is directed towards cricket.

Without any legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.

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

The 1867 Public Gambling Act bars any sort of gaming in India, but unlike in the US which has a law prohibiting web gambling, there is nothing similar here.

And overseas wagering companies are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore firms.

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

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest 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 wagering scandal emerged.

Two franchises have actually been prohibited for two years after some players and group authorities were condemned of repairing parts of the match at the behest of bookies.

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

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

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

It would likewise open a big service opportunity for licensed bookmakers and global online sports betting business to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue lots of, by helping make deals involved in gambling more transparent.

"If you work alongside wagering companies, you will have an extremely efficient approach of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise think, that the taxes levied on the gambler and the bookie will have to be sensible to make it appealing enough for them to bet legally.

However, there are limitations.

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

He includes that people who utilize unaccounted cash to put big bets will never bet legally.

Approval question

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

"Despite the fact that many individuals are included in some sort of sports betting - 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 likewise pass a different law to legalise sports betting gambling in their area.

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

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