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 go to win versus Australia.

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

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

Five minutes previously his money was on Australia, however now as the Indian batsman gets all set to deal with the last over he's changed his mind.

"I think India is winning, make the modification," he informs his bookmaker on the phone.

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

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

For more than 3 decades he's been sports betting 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, prohibited wagering syndicates grow in the country.

'Black money'

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 gambling cash is directed towards cricket.

With no legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.

Most of these deals include 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 prohibiting internet sports betting, there is absolutely nothing similar here.

And overseas sports betting companies are utilizing this loophole to draw Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually signed up accounts with offshore 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 control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been prohibited for two years after some gamers and team officials were condemned of fixing parts of the match at the behest of bookies.

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

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

"I do not mind paying some money out my earnings, as long as I can bet publicly," says our cricket gambler.

It would likewise open a substantial service opportunity for licensed bookies and global online sports betting business to establish 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 companies, you will have a really effective approach of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But many likewise think, that the taxes imposed on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be prohibited wagering due to the fact that (some) people wouldn't want to leave an audit trail by going into the white market," states Mr Oborne.

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

Approval concern

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

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable problem for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a different 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 negative about this becoming a truth anytime soon."

Yet with the idea having been endorsed by a main panel for the very first time, at least an argument has sparked around a topic - which previously was considered a taboo.