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 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his best hand.

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

Five minutes previously his money was on Australia, however now as the Indian batsman prepares to face 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 few minutes later 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 childlike glee.

For more than 3 decades he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful wagering distributes thrive in the country.

'Black money'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these transactions involve so-called "black cash", which is cash not stated to the taxman.

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

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

"Legally you can escape [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 call which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest modifications 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 came to light.

Two franchises have been banned for 2 years after some players and team officials were condemned of repairing parts of the match at the request of bookies.

The panel likewise argues that legalised wagering will bring in tax earnings for the exchequer that could total up to $2bn a year.

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

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

It would also open a huge business opportunity for licensed bookies and global online sports betting companies to establish operations in India.

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

"If you work together with wagering business, you will have a really reliable method of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are restrictions.

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

He includes that individuals who use unaccounted money to place huge bets will never bet legally.

Approval concern

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

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable problem for many," states our unnamed punter.

And given that India has a federal structural - each state will have to also pass a separate law to legalise sports betting gambling in their territory.

"The procedure 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 an official panel for the very first time, at least a dispute has sparked around a topic - which till now was considered a taboo.