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

In his two-bedroom house located in main Mumbai, a middle-aged guy is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his ideal hand.

He has made more than 10 contact the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, but now as the Indian batsman prepares yourself to face the last over he's altered his mind.

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

And a couple of minutes later on his prediction comes true, as India wins the match in a nail-biting surface.

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

For more than 3 decades he's been banking 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, prohibited wagering syndicates thrive in the nation.

'Black cash'

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 cash is directed towards cricket.

Without any legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest 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 type of sports betting in India, but unlike in the US which has a law forbiding internet gambling, there is nothing similar here.

And overseas sports betting business are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore firms.

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

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

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, saying it would help secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

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 wish of bookies.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the best direction.

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

It would also open a huge company opportunity for licensed bookies and international online wagering business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals involved in sports betting more transparent.

"If you work along with sports betting companies, you will have a very efficient technique of marking out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But many also believe, that the taxes imposed on the gambler and the bookie will have to be sensible to make it appealing enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) individuals would not desire to leave an audit path by getting in the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted cash to position big bets will never ever bet legally.

Approval question

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

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

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

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

Yet with the idea having been backed by an official panel for the very first time, a minimum of a dispute has sparked around a topic - which till now was considered a taboo.