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 requiring 17 go to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged man is seeing the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

He has made more than 10 calls in the last 30 minutes - not to discuss the match but to keep modifying his bet.

Five minutes previously his money was on Australia, however now as the Indian batsman prepares to deal with the last over he's changed his mind.

"I think India is winning, make the change," he informs his bookmaker on the phone.

And a few minutes later his forecast 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 illegal in India.

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

'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 money is directed towards cricket.

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated 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 stated to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law prohibiting web gaming, there is absolutely nothing comparable here.

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

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

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

Calls for legalisation

The clamour to legalise wagering 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 set up 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 sports betting scandal came to light.

Two franchises have been banned for two years after some gamers and team authorities were discovered guilty of repairing parts of the match at the behest of bookmakers.

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

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

"I don't mind paying some money out my profits, as long as I can gamble openly," says our cricket bettor.

It would also open a huge business chance for certified bookies and worldwide online wagering companies to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals associated with sports betting more transparent.

"If you work alongside sports betting business, you will have a very effective approach of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are constraints.

"Definitely there will be prohibited sports betting due to the fact that (some) people wouldn't want to leave an audit trail by getting in the white market," says Mr Oborne.

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

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a hard idea to sell.

"Despite the fact that numerous people are associated with some sort of gaming - it's still a questionable issue for numerous," says our unnamed punter.

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

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the concept having been endorsed by a main panel for the first time, a minimum of an argument has sparked around a subject - which previously was considered a taboo.