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 requiring 17 go to win versus Australia.

In his two-bedroom home situated in central 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 calls in the last 30 minutes - not to talk about the match but to keep revising his bet.

Five minutes previously his cash was on Australia, today as the Indian batsman prepares to deal with the last over he's altered his mind.

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

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

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

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

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, prohibited wagering distributes prosper in the country.

'Black cash'

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

Without any legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law restricting web sports betting, there is absolutely nothing comparable here.

And offshore wagering companies are using this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore companies.

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

But despite 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 actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest changes in the performance of India's cricket regulative 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 actually been banned for two years after some gamers and team authorities were found guilty of repairing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting is a move in the ideal 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 huge company chance for certified bookmakers and worldwide online wagering business to set up operations in India.

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

"If you work together with wagering business, you will have a very effective approach of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise believe, that the taxes levied on the gambler and the bookmaker will need to be affordable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited wagering because (some) individuals wouldn't want to leave an audit path by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted cash to put big bets will never gamble legally.

Approval question

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

"Despite the fact that lots of people are involved in some sort of sports betting - it's still a questionable concern for many," 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 gambling in their area.

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

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