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 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

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

Five minutes previously his cash was on Australia, and 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 tells his bookmaker on the phone.

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

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

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

Other than horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful sports betting distributes prosper in the country.

'Black cash'

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

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

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

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

And offshore sports betting business are utilizing this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have signed up accounts with overseas companies.

"Legally you can escape [with this], as the law is ambiguous for online gaming," states Mumbai- based lawyer HP Ranina.

But in spite of this, it is "offline gaming", done through telephone call which control the marketplace.

Require 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 help secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest 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 sports betting scandal emerged.

Two franchises have been banned for two years after some players and team authorities were found guilty of fixing parts of the match at the wish of bookies.

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

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

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

It would also open a huge business chance for certified bookmakers and global online sports betting business to establish operations in India.

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

"If you work together with wagering companies, you will have a really effective approach of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also believe, that the taxes imposed on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to bet legally.

However, there are restrictions.

"Definitely there will be illegal sports betting because (some) people would not wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to put big bets will never bet lawfully.

Approval concern

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

"Even though many individuals are associated with some sort of gaming - it's still a controversial issue for numerous," states our unnamed punter.

And offered that India has a federal structural - each state will need to also pass a different 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 negative about this becoming a reality anytime quickly."

Yet with the idea having been backed by a main panel for the very first time, a minimum of a debate has actually sparked around a subject - which till now was thought about a taboo.