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 needing 17 go to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right hand.

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

Five minutes earlier his money was on Australia, today as the Indian batsman gets prepared to face 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 few minutes later on his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

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

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

'Black money'

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

With no legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these deals involve so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law forbiding internet gaming, there is nothing similar here.

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

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

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

Calls for legalisation

The clamour to legalise sports betting 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 nation's preferred sport.

The Justice RM Lodha Commission was established to recommend 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 emerged.

Two franchises have been banned for 2 years after some gamers and team officials were found guilty of fixing parts of the match at the behest of bookmakers.

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

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

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

It would likewise open a big company chance for licensed bookies and global online sports betting business to set up operations in India.

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

"If you work along with wagering business, you will have a really effective approach of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be prohibited wagering since (some) individuals wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who use unaccounted money to place big bets will never bet lawfully.

Approval question

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

"Although many individuals are included in some sort of gambling - it's still a controversial issue for lots of," says our unnamed punter.

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

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

Yet with the idea having actually been backed by an official panel for the first time, a minimum of a dispute has actually fired up around a topic - which till now was thought about a taboo.