Howzat? The clamour to legalise sports 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 requiring 17 runs to win versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is enjoying the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right hand.

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

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

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

And a few minutes later his prediction comes to life, as India wins the match in a nail-biting surface.

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

For more than three decades he's been wagering 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, unlawful sports betting syndicates flourish in the country.

'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 sports betting money is directed towards cricket.

Without any legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law restricting internet gaming, there is nothing similar here.

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

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

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

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest modifications in the performance of India's cricket regulative 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 prohibited for two years after some gamers and group officials were condemned of repairing parts of the match at the request of bookies.

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

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

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

It would likewise open a substantial company chance for licensed bookmakers and international online sports betting companies to establish operations in India.

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

"If you work alongside sports betting business, you will have an extremely reliable method of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise think, that the taxes levied on the gambler and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) people wouldn't wish to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted cash to place big bets will never ever bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a difficult concept to offer.

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

And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their area.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

Yet with the idea having been backed by a main panel for the very first time, a minimum of an argument has fired up around a subject - which until now was considered a taboo.