Howzat? The clamour to legalise sports betting wagering 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 go to win versus Australia.

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

He has actually made more than 10 hire the last thirty minutes - not to talk about the match but 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 modification," he tells his bookie on the phone.

And a few 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 childish glee.

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

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited wagering syndicates grow in the nation.

'Black cash'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

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

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

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

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

But despite this, it is "offline gaming", done through telephone call which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest 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 emerged.

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

The panel likewise argues that legalised sports betting will bring in tax earnings for the exchequer that might total up to $2bn a year.

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

"I do not mind paying some money out my earnings, as long as I can gamble openly," says our cricket bettor.

It would likewise open a huge business chance for certified bookies and worldwide online sports betting companies to establish operations in India.

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

"If you work alongside sports betting companies, you will have an extremely effective method of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

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

However, there are constraints.

"Definitely there will be prohibited sports betting since (some) people would not wish to leave an audit path by entering the white market," states Mr Oborne.

He includes that people who utilize unaccounted money to place big bets will never bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard idea to offer.

"Even however many individuals are associated with some sort of gaming - it's still a questionable concern for lots of," states our unnamed punter.

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

"The procedure is so long and challenging 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 an official panel for the first time, at least a debate has sparked around a subject - which previously was considered a taboo.