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 runs to win versus Australia.

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

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

Five minutes previously his cash was on Australia, and now as the Indian batsman gets all set to deal with the last over he's altered his mind.

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

And a couple of minutes later on his forecast comes real, as India wins the match in a nail-biting surface.

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

For more than three years he's been banking on cricket matches. We can't expose 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 syndicates prosper in the country.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting market deserves 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 wager on anything related to the cricket match, from who is winning to the greatest specific run scorer.

Most of these deals include so-called "black cash", which is money not declared to the taxman.

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

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

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

But despite this, it is "offline gambling", done through call which control the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend modifications 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 emerged.

Two franchises have actually been prohibited for two years after some players and team officials were condemned of repairing parts of the match at the behest of bookies.

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

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

"I do not mind paying some money out my earnings, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a big business chance for licensed bookmakers and global online wagering business to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue numerous, by assisting make transactions associated with gambling more transparent.

"If you work together with wagering companies, you will have an extremely reliable approach of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) individuals wouldn't wish to leave an audit trail by getting in the white market," says Mr Oborne.

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

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a hard concept to offer.

"Even however lots of people are included in some sort of sports betting - it's still a controversial issue for numerous," says our unnamed punter.

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

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a truth anytime soon."

Yet with the idea having been backed by a main panel for the very first time, at least a debate has actually ignited around a topic - which until now was considered a taboo.