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 home situated in central Mumbai, a middle-aged guy is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his ideal hand.

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

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

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

And a couple of minutes later on his forecast comes real, as India wins the match in a nail-biting surface.

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

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

Other than horse racing, sports betting wagering of any kind is not allowed in India. Despite that, unlawful wagering distributes flourish 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 gambling money is directed towards cricket.

With no legal opportunity, punters put 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 highest specific run scorer.

Most of these transactions involve so-called "black money", which is money 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 web sports betting, there is absolutely nothing similar here.

And overseas sports betting business are using this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

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

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

Require legalisation

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

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

Two franchises have actually been banned for two years after some players and team authorities were found guilty of fixing parts of the match at the request of bookmakers.

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

Even bettors feel that legalising sports betting is a relocation in the ideal instructions.

"I don't mind paying some money out my revenues, as long as I can bet openly," states our cricket bettor.

It would likewise open a big service chance for licensed bookies and global online wagering companies to establish operations in India.

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

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

But lots of also believe, that the taxes imposed on the gambler 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 illegal sports betting since (some) individuals would not want to leave an audit path by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted money to position huge bets will never ever gamble lawfully.

Approval question

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

"Although lots of people are included in some sort of sports betting - it's still a controversial problem for many," says our unnamed punter.

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

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

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