Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 runs to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged man is watching the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right hand.

He has actually 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 money was on Australia, however now as the Indian batsman gets ready to deal with the last over he's changed his mind.

"I believe India is winning, make the modification," he tells his bookmaker on the phone.

And a few minutes later on his forecast comes real, as India wins the match in a nail-biting surface.

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

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

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering syndicates prosper in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's prohibited 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 put bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

The 1867 Public Gambling Act bars any kind of sports betting in India, but unlike in the US which has a law restricting web gambling, there is absolutely nothing comparable here.

And overseas sports betting companies are utilizing this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot people have registered accounts with overseas firms.

"Legally you can get away [with this], as the law is unclear for online sports betting," states Mumbai- based legal representative HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications 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 two years after some players and group officials were condemned of fixing parts of the match at the wish of bookmakers.

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

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

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

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

And it would assist limit match repairing in cricket and other sports betting, argue many, by assisting make deals associated with sports betting more transparent.

"If you work together with 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 have to be affordable to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting due to the fact that (some) individuals wouldn't wish to leave an audit path by going into the white market," says Mr Oborne.

He adds that people who use unaccounted cash to put big bets will never gamble legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a hard concept to sell.

"Although lots of people are associated with some sort of gambling - it's still a controversial problem for numerous," says our unnamed punter.

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

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

Yet with the concept having been backed by a main panel for the first time, at least an argument has actually fired up around a topic - which till now was considered a taboo.