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 versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares to face the last over he's altered his mind.

"I believe India is winning, make the change," he informs his bookie 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 actually made $200 today," he says with a childlike glee.

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

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

'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.

Without any legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated 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 declared to the taxman.

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law restricting internet gaming, there is nothing comparable here.

And offshore wagering companies are using this loophole to entice Indians. Although there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas companies.

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

But in spite of this, it is "offline gaming", done through phone calls which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established 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 wagering scandal came to light.

Two franchises have actually been prohibited for two years after some players and group officials were found guilty of fixing parts of the match at the wish of bookmakers.

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

Even gamblers feel that legalising sports betting wagering is a move in the ideal direction.

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

It would likewise open a huge organization opportunity for licensed bookmakers and international online sports betting business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by assisting make deals associated with sports betting more transparent.

"If you work together with sports betting business, you will have a really effective approach of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But lots of also believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering due to the fact that (some) people would not wish to leave an audit path by getting in the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to put huge bets will never ever gamble lawfully.

Approval concern

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

"Despite the fact that many individuals are involved in some sort of gaming - it's still a controversial issue for many," states our unnamed punter.

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

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

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