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 situated in central Mumbai, a middle-aged man is enjoying the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right hand.

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

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

"I think India is winning, make the modification," he tells his bookmaker on the phone.

And a couple of minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he states 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 illegal in India.

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

'Black money'

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 gambling money is directed towards cricket.

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest individual run scorer.

Most of these deals include so-called "black money", which is money not stated to the taxman.

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

And offshore sports betting companies are utilizing this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot people have actually registered accounts with overseas firms.

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

But despite this, it is "offline gambling", done through phone calls which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend 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 emerged.

Two franchises have actually been prohibited for 2 years after some gamers and group officials were found guilty of fixing parts of the match at the wish of bookies.

The panel likewise argues that legalised wagering will bring in tax profits 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 money out my earnings, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a big business chance for certified bookmakers and worldwide online wagering business to set up operations in India.

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

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

But numerous also think, that the taxes levied on the gambler and the bookie will need to be affordable to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited wagering because (some) individuals would not desire to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to place huge bets will never bet lawfully.

Approval concern

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

"Although many individuals are associated with some sort of gambling - it's still a questionable issue for numerous," says our unnamed punter.

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

"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a reality anytime soon."

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