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 go to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged man is watching the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has made more than 10 contact the last 30 minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his cash was on Australia, 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 tells his bookie on the phone.

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

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

For more than 3 years he's been sports betting on cricket matches. We can't expose his name as what he's doing is illegal in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting syndicates flourish in the country.

'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 gambling money is directed towards cricket.

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can wager on anything related 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 gambling in India, however unlike in the US which has a law prohibiting internet sports betting, there is nothing similar here.

And offshore sports betting companies are utilizing this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot people have registered accounts with offshore firms.

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

But regardless of this, it is "offline sports betting", done through telephone call which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest changes in the functioning 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 prohibited for two years after some gamers and team authorities were condemned of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax earnings for the exchequer that might 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 revenues, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a substantial business chance for certified bookies and global online sports betting companies to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by assisting make transactions involved in sports betting more transparent.

"If you work along with wagering companies, you will have a very efficient technique of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) people would not desire to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to place big bets will never ever bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a tough idea to sell.

"Despite the fact that lots of people are associated with some sort of gaming - 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 different law to legalise sports betting in their area.

"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the concept having 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.