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 requiring 17 runs to win against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged man is watching the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

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

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

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

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

Besides horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited wagering distributes grow in the country.

'Black cash'

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

Without any legal avenue, 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 private run scorer.

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

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

And offshore sports betting business 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 signed up accounts with overseas companies.

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

But regardless of this, it is "offline gambling", done through call which control the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications in the functioning 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 players and group officials were condemned of repairing parts of the match at the behest of bookies.

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

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

"I do not mind paying some cash out my revenues, as long as I can bet openly," states our cricket bettor.

It would likewise open a huge service chance for licensed bookmakers and international online sports betting companies to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work alongside sports betting business, you will have a very effective technique of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also think, that the taxes imposed on the bettor and the bookmaker will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be illegal wagering since (some) people wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.

He includes that people who use unaccounted cash to place huge bets will never ever bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a tough idea to sell.

"Despite the fact that lots of people are involved in some sort of sports betting - it's still a controversial issue for numerous," says our unnamed punter.

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

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

Yet with the concept having been endorsed by a main panel for the very first time, at least a debate has ignited around a topic - which previously was thought about a taboo.