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 runs to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged man is seeing the game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his best hand.

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

Five minutes previously his money was on Australia, and now as the Indian batsman prepares yourself to face the last over he's altered his mind.

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

And a few minutes later his prediction 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 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited wagering syndicates thrive in the country.

'Black cash'

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

Without any legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And overseas sports betting business are using this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have actually registered accounts with overseas firms.

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

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

Require legalisation

The clamour to legalise wagering in cricket has actually 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 established to recommend modifications 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 prohibited for 2 years after some gamers and team authorities were found guilty of repairing parts of the match at the wish of bookmakers.

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

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

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

It would also open a big organization chance for licensed bookies and global online wagering companies to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by helping make deals associated with sports betting more transparent.

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

But many also 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 limitations.

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

He includes that individuals who utilize unaccounted money to put big bets will never gamble lawfully.

Approval concern

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

"Although lots of people are involved in some sort of sports betting - it's still a questionable problem for lots of," states our unnamed punter.

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

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

Yet with the concept having actually been endorsed by an official panel for the very first time, at least an argument has actually ignited around a subject - which up until now was thought about a taboo.