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 runs to win versus Australia.

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

He has actually made more than 10 calls in the last 30 minutes - not to go over the match but to keep modifying his bet.

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

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

And a few minutes later his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

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

Besides horse racing, sports betting of any kind is not allowed in India. Despite that, illegal sports betting distributes flourish 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 gambling cash is directed towards cricket.

With no legal avenue, 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 greatest specific run scorer.

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

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

And offshore sports betting business are utilizing this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have registered accounts with offshore companies.

"Legally you can get away [with this], as the law is ambiguous for online gaming," says Mumbai- based legal representative HP Ranina.

But despite this, it is "offline sports betting", done through telephone call which control the market.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications 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 emerged.

Two franchises have actually been prohibited for two years after some gamers and group authorities were condemned of fixing parts of the match at the behest of bookies.

The panel also argues that legalised wagering will bring in tax revenues for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a relocation in the ideal instructions.

"I don't mind paying some cash out my profits, as long as I can bet publicly," states our cricket gambler.

It would likewise open a huge service opportunity for certified bookmakers and global online sports betting business to set up operations in India.

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

"If you work together with sports betting business, you will have a very reliable technique of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous likewise think, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be unlawful wagering since (some) individuals would not want to leave an audit path by going into the white market," says Mr Oborne.

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

Approval concern

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

"Although lots of people are involved in some sort of sports betting - it's still a controversial issue for many," states our unnamed punter.

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

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this becoming a reality anytime soon."

Yet with the concept having actually been backed by an official panel for the very first time, at least a dispute has fired up around a topic - which previously was thought about a taboo.