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 against Australia.

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

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

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

"I think India is winning, make the change," he tells his bookie on the phone.

And a few minutes later on his prediction comes to life, as India wins the match in a nail-biting surface.

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

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

Aside from horse racing, sports betting wagering of any kind is not enabled in India. Despite that, illegal wagering distributes flourish in the country.

'Black cash'

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

Without any legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest individual run scorer.

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

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

And offshore wagering business are using this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to suggest changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

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

The panel also argues that legalised sports betting will bring in tax revenues for the exchequer that might amount to $2bn a year.

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

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

It would likewise open a big business opportunity for licensed bookies and global online wagering business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by assisting make deals included in gambling more transparent.

"If you work alongside sports betting business, you will have a really effective technique of marking out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookie will have to be sensible to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be illegal wagering due to the fact that (some) individuals wouldn't wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted money to put huge bets will never ever gamble lawfully.

Approval question

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

"Although many individuals are included in some sort of sports betting - it's still a questionable concern for many," says our unnamed punter.

And offered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their area.

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

Yet with the idea having been endorsed by an official panel for the first time, a minimum of an argument has fired up around a subject - which previously was thought about a taboo.