Howzat? The clamour to legalise sports betting wagering 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 home located in main Mumbai, a middle-aged guy is seeing the 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 employ the last thirty minutes - not to discuss the match but to keep revising his bet.

Five minutes previously his money was on Australia, and now as the Indian batsman gets all set to face the last over he's changed his mind.

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

And a couple of minutes later on his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

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

Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, illegal wagering distributes flourish in the nation.

'Black cash'

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

Without any legal opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these transactions include so-called "black cash", which is money not stated to the taxman.

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

And offshore wagering companies are utilizing this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas firms.

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend changes 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 actually been banned for two years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookmakers.

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

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

"I don't mind paying some money out my profits, as long as I can bet publicly," says our cricket gambler.

It would also open a huge company chance for certified bookies and global online wagering companies 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 associated with gambling more transparent.

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

But many likewise think, that the taxes levied on the gambler and the bookmaker 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 because (some) individuals wouldn't want to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that people who utilize unaccounted money to place huge bets will never ever gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a tough concept to sell.

"Despite the fact that many individuals are associated with some sort of gaming - it's still a controversial issue for many," says 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 gambling in their territory.

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

Yet with the idea having been backed by a main panel for the first time, at least a debate has sparked around a topic - which till now was considered a taboo.