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 runs to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged male is watching the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

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

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

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

And a couple of minutes later his forecast comes to life, as India wins the match in a nail-biting finish.

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

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

Besides horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited wagering syndicates grow in the nation.

'Black money'

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

Without any legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bet on anything associated 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 declared to the taxman.

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

And overseas sports betting companies are using this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have registered accounts with overseas companies.

"Legally you can get away [with this], as the law is unclear for online gambling," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline gambling", done through phone calls which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up 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 been banned for two years after some players and group authorities were found guilty of fixing parts of the match at the wish of bookmakers.

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

Even bettors feel that legalising sports betting wagering is a move in the right instructions.

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

It would also open a big organization opportunity for certified bookies and worldwide online sports betting business to set up operations in India.

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

"If you work along with sports betting companies, you will have a very reliable method of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are constraints.

"Definitely there will be illegal sports betting due to the fact that (some) individuals would not want to leave an audit path by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to place huge bets will never ever bet lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a hard concept to offer.

"Although lots of people are involved in some sort of gambling - it's still a questionable issue for many," states our unnamed punter.

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

"The procedure 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 soon."

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