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 go to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his best hand.

He has actually made more than 10 employ the last thirty minutes - not to talk about the match but to keep modifying his bet.

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

"I believe India is winning, make the change," he tells his bookie on the phone.

And a few minutes later on his prediction comes true, 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 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 of any kind is not allowed in India. Despite that, prohibited sports betting distributes prosper in the country.

'Black cash'

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

Without any legal avenue, punters place bets using 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 kind of sports betting in India, but unlike in the US which has a law forbiding internet sports betting, there is absolutely nothing comparable here.

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

"Legally you can escape [with this], as the law is uncertain for online sports betting," says Mumbai- based lawyer HP Ranina.

But regardless of this, it is "offline gaming", done through phone calls which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 sports betting scandal came to light.

Two franchises have been prohibited for two years after some players and group authorities were condemned of fixing parts of the match at the wish of bookies.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the ideal 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 huge organization chance for certified bookmakers 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 numerous, by helping make deals associated with gambling more transparent.

"If you work alongside sports betting companies, you will have an extremely efficient technique of marking out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of also believe, that the taxes levied on the bettor and the bookie will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals would not desire to leave an audit path by getting in the white market," says Mr Oborne.

He includes that people who use unaccounted cash to place huge bets will never gamble lawfully.

Approval question

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

"Despite the fact that lots of people are involved in some sort of gaming - it's still a questionable concern for lots of," states our unnamed punter.

And given that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their territory.

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

Yet with the idea having been endorsed by an official panel for the very first time, a minimum of a dispute has actually sparked around a topic - which previously was thought about a taboo.