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 against Australia.

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

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

Five minutes earlier his money was on Australia, however now as the Indian batsman gets all set to face the last over he's altered his mind.

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

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

"I have made $200 today," he states with a childish glee.

For more than 3 years he's been wagering 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 allowed India. Despite that, prohibited sports betting distributes flourish in the nation.

'Black money'

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

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

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

The 1867 Public Gambling Act bars any kind of gambling in India, however unlike in the US which has a law restricting internet gaming, there is nothing similar here.

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

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

But despite this, it is "offline gaming", done through telephone call which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the functioning 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 been banned for 2 years after some gamers and group officials were condemned of repairing parts of the match at the behest of bookies.

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

Even gamblers feel that legalising sports betting wagering is a move in the right direction.

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

It would likewise open a huge company chance for certified bookies and international online wagering business to set up operations in India.

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

"If you work together with wagering companies, you will have a very effective technique of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise think, that the taxes levied on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal wagering because (some) people wouldn't want to leave an audit path by getting in the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to position huge bets will never gamble lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a tough concept to sell.

"Despite the fact that lots of individuals are associated with some sort of gambling - it's still a questionable concern for many," says our unnamed punter.

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

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime soon."

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