Howzat? The clamour to legalise sports betting 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 house situated in central Mumbai, a middle-aged guy is watching the game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has actually made more than 10 employ the last 30 minutes - not to go over 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 change," he informs his bookmaker on the phone.

And a few minutes later his prediction comes true, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childlike glee.

For more than three years 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 wagering of any kind is not permitted in India. Despite that, illegal sports betting distributes flourish in the country.

'Black money'

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

With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law forbiding internet sports betting, there is absolutely nothing similar here.

And overseas wagering companies are using this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore firms.

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

But in spite of this, it is "offline gambling", done through phone calls which control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest changes in the functioning 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 been prohibited for two years after some gamers and team authorities were condemned of fixing parts of the match at the request of bookies.

The panel also argues that legalised wagering will generate tax earnings for the exchequer that might amount to $2bn a year.

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

"I do not mind paying some cash out my profits, as long as I can gamble publicly," says our cricket bettor.

It would likewise open a substantial company opportunity for certified bookmakers and worldwide online sports betting companies to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by assisting make transactions associated with sports betting more transparent.

"If you work together with wagering business, you will have an extremely effective approach of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But many likewise believe, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it appealing enough for them to bet legally.

However, there are constraints.

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

He adds that people who utilize unaccounted cash to put big bets will never gamble lawfully.

Approval concern

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

"Although lots of people are associated with some sort of gambling - it's still a controversial concern for numerous," 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 gambling in their territory.

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

Yet with the concept having actually been backed by a main panel for the first time, at least a dispute has actually ignited around a subject - which previously was thought about a taboo.