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 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male is watching the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right hand.

He has made more than 10 employ the last 30 minutes - not to discuss the match but to keep revising his bet.

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

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

And a few minutes later his prediction comes real, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childish 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 unlawful in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting distributes grow in the nation.

'Black money'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest specific run scorer.

Most of these transactions 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, but unlike in the US which has a law forbiding internet gambling, there is absolutely nothing similar here.

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

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

But regardless of this, it is "offline gaming", done through telephone call which control the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning 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 players and group officials were found guilty of fixing parts of the match at the behest of bookies.

The panel likewise argues that legalised sports betting will bring in tax profits for the exchequer that could total up to $2bn a year.

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

"I do not mind paying some money out my revenues, as long as I can bet openly," says our cricket gambler.

It would likewise open a big service chance for licensed bookies and worldwide online wagering companies to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by assisting make deals included in sports betting more transparent.

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

But numerous likewise believe, that the taxes levied on the bettor and the bookie will need to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) people would not want to leave an audit path by entering the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to place big bets will never gamble legally.

Approval question

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

"Although many people are associated with some sort of sports betting - it's still a controversial concern for numerous," says our unnamed punter.

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

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime quickly."

Yet with the concept having actually been backed by a main panel for the very first time, a minimum of a dispute has actually ignited around a subject - which up until now was thought about a taboo.