Howzat? The clamour to legalise sports betting 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 requiring 17 runs to win against Australia.

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

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

Five minutes earlier his money was on Australia, and now as the Indian batsman prepares 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 on his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited wagering distributes thrive in the nation.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting market deserves 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 bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest specific run scorer.

Most of these deals include so-called "black money", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law forbiding internet gambling, there is absolutely nothing comparable here.

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

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

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation'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 came to light.

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

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

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

"I do not mind paying some cash out my profits, as long as I can gamble openly," states our cricket gambler.

It would likewise open a big organization opportunity for certified bookies and global online sports betting companies to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by helping make deals included in gambling more transparent.

"If you work alongside sports betting business, 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 imposed on the gambler and the bookie will need to be sensible to make it attractive enough for them to gamble legally.

However, there are restrictions.

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

He includes that people who utilize unaccounted cash to position huge bets will never ever gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a tough concept to offer.

"Although lots of people are included in some sort of gambling - it's still a questionable concern for lots of," 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 gambling in their area.

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

Yet with the concept having been backed by an official panel for the very first time, at least a debate has actually sparked around a topic - which previously was considered a taboo.