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 go to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is enjoying the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone 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 yourself to deal with the last over he's altered his mind.

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

And a few minutes later his forecast 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 years he's been sports betting on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, illegal wagering syndicates flourish in the nation.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering market deserves 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 wager on anything related to the cricket match, from who is winning to the greatest specific 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 kind of gaming in India, however unlike in the US which has a law restricting web sports betting, there is nothing comparable here.

And overseas sports betting business are utilizing this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with offshore firms.

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

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

Require legalisation

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

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

Two franchises have actually been banned for two years after some players and team authorities were condemned of repairing parts of the match at the request of bookies.

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

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

"I do not mind paying some money out my revenues, as long as I can gamble publicly," says our cricket gambler.

It would likewise open a huge organization chance for licensed bookmakers and global online wagering business to establish operations in India.

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

"If you work along with wagering companies, you will have an extremely effective technique of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise believe, that the taxes imposed on the bettor and the bookmaker 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 since (some) individuals wouldn't desire to leave an audit trail by going into the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to put huge bets will never gamble legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a difficult idea to offer.

"Even however lots of people are included in some sort of sports betting - it's still a controversial issue for numerous," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a separate 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 coming true anytime quickly."

Yet with the idea having actually been backed by a main panel for the very first time, a minimum of a dispute has ignited around a topic - which previously was thought about a taboo.