Howzat? The clamour to legalise sports betting wagering 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 against Australia.

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

He has made more than 10 contact the last thirty minutes - not to go over the match but to keep modifying his bet.

Five minutes previously his cash was on Australia, now as the Indian batsman gets prepared to deal with the last over he's altered his mind.

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

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

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

For more than three decades he's been banking 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, unlawful wagering distributes flourish in the nation.

'Black money'

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

Without any 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 greatest private 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 kind of gaming in India, but unlike in the US which has a law prohibiting web sports betting, there is absolutely nothing comparable here.

And overseas wagering companies are utilizing this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot people have registered accounts with offshore firms.

"Legally you can get away [with this], as the law is uncertain for online gaming," states Mumbai- based attorney HP Ranina.

But despite this, it is "offline sports betting", done through phone calls which control the market.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying 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 emerged.

Two franchises have actually been banned for two years after some gamers and group authorities were found guilty of repairing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting is a move in the ideal direction.

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

It would also open a huge company chance for certified bookies and international online sports betting companies to set up operations in India.

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

"If you work along with wagering business, you will have a really reliable technique of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise believe, that the taxes levied on the gambler and the bookmaker will have to be sensible to make it appealing enough for them to bet legally.

However, there are restrictions.

"Definitely there will be unlawful wagering since (some) individuals wouldn't desire to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to position big bets will never bet legally.

Approval concern

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

"Despite the fact that many individuals are included in some sort of gambling - it's still a controversial concern for numerous," says 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 procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

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