Howzat? The clamour to legalise sports betting 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 versus Australia.

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

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

Five minutes previously his cash was on Australia, and now as the Indian batsman prepares yourself 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 couple of minutes later on his prediction comes true, as India wins the match in a nail-biting finish.

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

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

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, unlawful wagering distributes grow in the nation.

'Black money'

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

Without any legal avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.

Most of these transactions involve so-called "black cash", which is cash 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 forbiding web gambling, there is nothing comparable here.

And overseas sports betting companies are utilizing this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore firms.

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

But regardless of this, it is "offline sports betting", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has 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 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 wagering scandal came to light.

Two franchises have been prohibited for 2 years after some players and group authorities were discovered guilty of repairing parts of the match at the request of bookmakers.

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

Even bettors feel that legalising sports betting wagering is a relocation in the right direction.

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

It would likewise open a huge service opportunity for licensed bookies and international online sports betting business to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by helping make transactions involved in gambling more transparent.

"If you work along with wagering business, you will have a very effective approach of marking out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of likewise think, that the taxes imposed on the gambler and the bookie will have to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be illegal wagering due to the fact that (some) individuals wouldn't desire to leave an audit path by getting in the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted money to put huge bets will never bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a hard concept to sell.

"Despite the fact that lots of people are associated with some sort of gaming - it's still a controversial issue for many," says our unnamed punter.

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

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this becoming a truth anytime soon."

Yet with the idea having been backed by an official panel for the first time, at least a debate has actually fired up around a topic - which previously was thought about a taboo.