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 needing 17 go to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is watching the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

He has made more than 10 hire the last thirty minutes - not to go over the match however to keep modifying his bet.

Five minutes previously his cash was on Australia, now as the Indian batsman gets prepared to face 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 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 childish 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 unlawful in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates flourish in the nation.

'Black cash'

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 cash is directed towards cricket.

With no legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.

Most of these deals include so-called "black cash", which is money not declared 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 restricting web gaming, there is nothing comparable here.

And overseas wagering business are utilizing this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with overseas companies.

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

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

Calls for legalisation

The clamour to legalise wagering 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 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 actually been prohibited for 2 years after some gamers and team officials were found guilty of repairing parts of the match at the behest of bookmakers.

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

Even bettors feel that legalising sports betting wagering is a relocation in the right direction.

"I don't mind paying some cash out my revenues, as long as I can gamble publicly," states our cricket bettor.

It would also open a big company opportunity for licensed bookmakers and global online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by assisting make transactions included in sports betting more transparent.

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

But numerous likewise believe, that the taxes imposed on the gambler and the bookmaker will have to be reasonable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be prohibited sports betting because (some) individuals wouldn't desire to leave an audit trail by going into the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to place big bets will never gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard idea to offer.

"Despite the fact that lots of people are associated with some sort of gambling - it's still a questionable problem for lots of," states 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 tricky that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the concept having been endorsed by a main panel for the very first time, a minimum of a dispute has fired up around a topic - which previously was thought about a taboo.