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 go to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone 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 earlier his cash was on Australia, now as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I believe India is winning, make the change," he informs his bookmaker on the phone.

And a few minutes later on his forecast comes to life, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering distributes thrive in the nation.

'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 cash is directed towards cricket.

Without any legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

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

And overseas wagering companies are utilizing this loophole to lure Indians. Although there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with offshore companies.

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have actually been banned for two years after some players and group 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 profits for the exchequer that could amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the ideal direction.

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

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

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by assisting make deals associated with gambling more transparent.

"If you work alongside sports betting business, you will have an extremely reliable approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But many also believe, that the taxes imposed on the gambler and the bookmaker will need to be reasonable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

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

He adds that people who utilize unaccounted money to put big bets will never bet legally.

Approval concern

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

"Even though many individuals are involved in some sort of sports betting - it's still a controversial problem for many," says our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their area.

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

Yet with the concept having been backed by a main panel for the first time, at least a debate has sparked around a subject - which up until now was thought about a taboo.