Howzat? The clamour to legalise sports betting 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 located in main Mumbai, a middle-aged man is watching the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, today as the Indian batsman prepares to face the last over he's changed his mind.

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

And a few minutes later his forecast comes true, as India wins the match in a nail-biting finish.

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

For more than three decades he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting distributes grow 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 money is directed towards cricket.

Without any legal avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

Most of these transactions involve so-called "black cash", 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 internet gaming, there is absolutely nothing similar here.

And overseas sports betting business are utilizing this loophole to draw Indians. Even though 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 escape [with this], as the law is uncertain for online sports betting," says Mumbai- based lawyer HP Ranina.

But despite 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 idea, stating it would help clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to recommend changes 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 came to light.

Two franchises have actually been banned for two years after some players and team officials were condemned of fixing parts of the match at the behest of bookies.

The panel also argues that legalised sports betting will generate tax earnings for the exchequer that could total up to $2bn a year.

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

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

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

And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions associated with gambling more transparent.

"If you work along with wagering companies, you will have a very efficient approach of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise believe, that the taxes levied on the bettor and the bookie will need to be sensible to make it attractive enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) people would not wish to leave an audit path by entering the white market," states Mr Oborne.

He includes that people who utilize unaccounted money to position huge bets will never ever gamble legally.

Approval concern

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

"Despite the fact that numerous people are involved in some sort of gambling - it's still a controversial concern for numerous," says our unnamed punter.

And offered 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 difficult that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

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