Howzat? The clamour to legalise sports betting wagering 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 house situated in main Mumbai, a middle-aged male is seeing the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right hand.

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

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

"I think India is winning, make the modification," he tells his bookmaker on the phone.

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

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

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

Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited sports betting syndicates prosper in the nation.

'Black cash'

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

With no legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest 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 type of gambling in India, but unlike in the US which has a law restricting web gambling, there is absolutely nothing comparable here.

And offshore wagering business are using this loophole to draw 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 companies.

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

But regardless of this, it is "offline gambling", done through phone calls which dominate 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 idea, saying it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest changes 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 came to light.

Two franchises have actually been banned for two years after some players and team authorities were condemned of repairing parts of the match at the wish of bookmakers.

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

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

"I do not mind paying some cash out my earnings, as long as I can bet publicly," says our cricket bettor.

It would likewise open a big company opportunity for licensed 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 many, by helping make transactions included in gambling more transparent.

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

But numerous likewise believe, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

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

He includes that people who use unaccounted cash to put huge bets will never gamble legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a tough concept to offer.

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a questionable concern for many," states our unnamed punter.

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

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

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