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 go to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged man is enjoying 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 actually made more than 10 contact the last thirty minutes - not to go over the match however to keep revising his bet.

Five minutes previously his cash was on Australia, today as the Indian batsman gets all set to face the last over he's changed his mind.

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

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

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

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

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful wagering distributes flourish in the country.

'Black money'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can bank 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 money not stated to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, but unlike in the US which has a law prohibiting internet sports betting, there is absolutely nothing comparable here.

And overseas sports betting business are utilizing this loophole to tempt Indians. Even though there are no online sports betting operators based out of India, a lot individuals have signed up accounts with offshore companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend 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 sports betting scandal came to light.

Two franchises have been banned for 2 years after some gamers and team authorities were condemned of repairing parts of the match at the request of bookies.

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

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

"I don't mind paying some money out my earnings, as long as I can bet openly," says our cricket bettor.

It would also open a substantial service chance for licensed bookies and global online sports betting companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.

"If you work together with wagering companies, you will have a very reliable technique of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous also believe, that the taxes imposed on the bettor and the bookmaker will need to be affordable to make it appealing enough for them to bet legally.

However, there are restrictions.

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

He adds that people who use unaccounted money to put big 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 hard concept to offer.

"Even however lots of people are associated with some sort of sports betting - it's still a controversial issue for lots of," states our unnamed punter.

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

"The procedure is so long and difficult 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 actually been backed by a main panel for the very first time, at least an argument has fired up around a topic - which previously was considered a taboo.