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 needing 17 go to win versus Australia.

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

He has made more than 10 calls in the last 30 minutes - not to discuss the match however to keep revising his bet.

Five minutes earlier his money was on Australia, however now as the Indian batsman prepares to face the last over he's altered his mind.

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

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

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

For more than 3 years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting wagering of any kind is not permitted in India. Despite that, prohibited sports betting distributes flourish in the nation.

'Black money'

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

With no legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

The majority of these deals include so-called "black money", which is money not declared to the taxman.

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

And overseas sports betting business are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas companies.

"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 gambling", done through telephone call which control the marketplace.

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, saying it would help clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend 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 wagering scandal emerged.

Two franchises have been banned for 2 years after some players and team officials were condemned of fixing parts of the match at the request of bookmakers.

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

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

"I do not mind paying some cash out my earnings, as long as I can bet publicly," states our cricket gambler.

It would likewise open a huge service opportunity for certified bookmakers and global online wagering business to establish operations in India.

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

"If you work alongside sports betting companies, you will have a very efficient technique of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be illegal wagering because (some) individuals would not want to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to position big bets will never bet lawfully.

Approval question

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

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

And considered that India has a federal structural - each state will have to also 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 ending up being a reality anytime soon."

Yet with the idea having been endorsed by a main panel for the first time, at least an argument has fired up around a subject - which till now was thought about a taboo.