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 needing 17 runs to win against Australia.

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

He has made more than 10 hire the last 30 minutes - not to talk about the match however to keep revising his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman gets prepared to deal with the last over he's changed his mind.

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

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

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

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

Other than horse racing, sports betting wagering of any kind is not allowed in India. Despite that, illegal wagering distributes flourish 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 sports betting cash is directed towards cricket.

With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest private run scorer.

The majority of these transactions involve so-called "black cash", which is cash not declared 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 forbiding internet gambling, there is nothing similar here.

And overseas wagering business are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with offshore companies.

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

But in spite of this, it is "offline gaming", 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 concept, saying it would help secure down on corruption in the country's preferred 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 emerged.

Two franchises have been prohibited for 2 years after some players and group officials were condemned of repairing parts of the match at the behest of bookmakers.

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

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

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

It would also open a substantial business opportunity for certified bookies and international online wagering business to establish operations in India.

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

"If you work alongside sports betting companies, you will have a really effective approach of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes levied on the bettor and the bookie will need to be affordable to make it attractive enough for them to gamble legally.

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) people would not wish to leave an audit path by entering the white market," states Mr Oborne.

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

Approval question

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

"Although many individuals are associated with some sort of gaming - it's still a questionable issue for many," states our unnamed punter.

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

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical 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 actually fired up around a topic - which till now was thought about a taboo.