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 needing 17 runs to win against Australia.

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

He has made more than 10 hire the last 30 minutes - not to discuss the match but to keep modifying his bet.

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

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

And a few minutes later 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 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting 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 bank on anything related to the cricket match, from who is winning to the greatest private run scorer.

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

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

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

"Legally you can escape [with this], as the law is unclear for online gaming," says Mumbai- based lawyer HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications in the performance 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 actually been prohibited for two years after some gamers and team authorities were condemned of repairing parts of the match at the request of bookmakers.

The panel likewise argues that legalised sports betting will generate tax earnings for the exchequer that could total up to $2bn a year.

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

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

It would likewise open a substantial business opportunity for licensed bookies and global online wagering business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by helping make deals associated with gambling more transparent.

"If you work along with sports betting business, you will have a very reliable technique of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of also think, that the taxes imposed on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be illegal wagering because (some) people wouldn't wish to leave an audit path by going into the white market," states Mr Oborne.

He adds that people who utilize unaccounted cash to place huge bets will never ever bet legally.

Approval concern

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

"Even however many individuals are included in some sort of gambling - it's still a questionable problem for numerous," states our unnamed punter.

And given that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their territory.

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a truth anytime soon."

Yet with the concept having been backed by an official panel for the very first time, a minimum of a debate has actually sparked around a subject - which till now was thought about a taboo.