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 needing 17 go to win against Australia.

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

He has made more than 10 employ the last 30 minutes - not to discuss the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, now as the Indian batsman gets ready to face the last over he's changed his mind.

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

And a few 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 states with a childish 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.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting distributes flourish in the country.

'Black money'

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

With no legal opportunity, punters position bets using 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.

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

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law forbiding web gaming, there is absolutely nothing similar here.

And overseas sports betting companies are using this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore companies.

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

But despite this, it is "offline sports betting", done through call which dominate the marketplace.

Calls for legalisation

The clamour to legalise sports betting 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 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 wagering scandal came to light.

Two franchises have been banned for 2 years after some gamers and group officials were condemned of repairing parts of the match at the wish of bookmakers.

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

Even gamblers feel that legalising sports betting wagering is a move in the right direction.

"I don't mind paying some cash out my revenues, as long as I can gamble openly," states our cricket gambler.

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

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

"If you work alongside wagering companies, you will have a really effective approach of marking out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes imposed on the bettor and the bookie will need to be affordable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

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

He includes that people who utilize unaccounted money to place big bets will never ever bet legally.

Approval concern

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

"Even however numerous people are included in some sort of sports betting - it's still a controversial problem for many," states our unnamed punter.

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

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

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