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 runs to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is watching the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right hand.

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

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

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

And a couple of minutes later on his prediction comes to life, 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 3 years he's been wagering on cricket matches. We can't expose his name as what he's doing is unlawful in India.

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

'Black money'

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

With no legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.

Most of these deals involve so-called "black money", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any type of sports betting in India, however unlike in the US which has a law forbiding web gaming, there is nothing comparable here.

And offshore sports betting companies are utilizing this loophole to draw 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 escape [with this], as the law is uncertain for online gaming," says Mumbai- based attorney HP Ranina.

But regardless of this, it is "offline sports betting", done through call which dominate the market.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected 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 recommend changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been prohibited for 2 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 bring in tax incomes for the exchequer that might total up to $2bn a year.

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

"I don't mind paying some money out my earnings, as long as I can bet publicly," says our cricket bettor.

It would also open a big company chance for certified bookmakers and international online wagering business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by helping make deals associated with sports betting more transparent.

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

But numerous likewise think, that the taxes imposed on the gambler and the bookmaker will have to be sensible to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited wagering due to the fact that (some) individuals would not want to leave an audit path by entering the white market," states Mr Oborne.

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

Approval concern

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

"Although lots of people are associated with some sort of sports betting - it's still a controversial problem for numerous," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting 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 coming true anytime soon."

Yet with the idea having been backed by a main panel for the first time, a minimum of an argument has sparked around a subject - which till now was thought about a taboo.