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 central Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, 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 couple of minutes later his prediction comes real, as India wins the match in a nail-biting finish.

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

For more than 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.

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

'Black money'

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

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

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

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

And offshore wagering business are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore firms.

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

But despite this, it is "offline gambling", done through telephone call which control the market.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest 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 emerged.

Two franchises have actually been banned for two years after some gamers and team officials were discovered guilty of repairing parts of the match at the request of bookmakers.

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

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

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

It would also open a substantial organization chance for licensed bookmakers and global online wagering companies to establish operations in India.

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

"If you work alongside wagering companies, you will have a really reliable technique of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous likewise believe, that the taxes levied on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited wagering since (some) people wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to put big bets will never ever gamble 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 hard idea to offer.

"Despite the fact that lots of people are included in some sort of gaming - it's still a controversial problem for lots of," says our unnamed punter.

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

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

Yet with the concept having actually been backed by an official panel for the very first time, at least an argument has actually sparked around a subject - which until now was thought about a taboo.