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 versus Australia.

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

He has actually made more than 10 calls in the last 30 minutes - not to go over the match however to keep modifying his bet.

Five minutes previously his money was on Australia, today as the Indian batsman prepares yourself to face the last over he's changed his mind.

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

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

"I have made $200 today," he states 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 illegal in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting distributes 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 cash is directed towards cricket.

With no legal avenue, punters position bets utilizing 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.

The majority of these deals include so-called "black cash", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law prohibiting internet sports betting, there is nothing comparable here.

And overseas wagering companies are utilizing this loophole to entice Indians. Although there are no online sports betting operators based out of India, a lot individuals have signed up accounts with overseas firms.

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

But regardless of this, it is "offline gaming", done through phone calls which control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 sports betting scandal came to light.

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 wish of bookies.

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

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

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

It would also open a big organization chance for certified bookmakers and global online wagering business to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue numerous, by assisting make transactions included in gambling more transparent.

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

But lots of also think, that the taxes levied on the gambler and the bookmaker will have to be sensible to make it attractive enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be illegal sports betting due to the fact that (some) people would not want to leave an audit path by getting in the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to put big bets will never gamble lawfully.

Approval question

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

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

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

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

Yet with the idea having actually been backed by a main panel for the very first time, at least a debate has ignited around a subject - which until now was thought about a taboo.