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 requiring 17 go to win against Australia.

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

He has actually made more than 10 employ the last thirty minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his cash was on Australia, now as the Indian batsman prepares yourself to face the last over he's altered his mind.

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

And a few minutes later on his prediction comes true, 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 decades he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not permitted in India. Despite that, illegal wagering syndicates thrive 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 money is directed towards cricket.

Without any legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law restricting web gaming, there is nothing comparable here.

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

"Legally you can escape [with this], as the law is unclear for online sports betting," states Mumbai- based legal representative HP Ranina.

But regardless of this, it is "offline gambling", done through call which dominate the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, stating it would assist secure down on corruption in the country's favourite 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 emerged.

Two franchises have been banned for 2 years after some gamers and group authorities were condemned of fixing parts of the match at the request of bookmakers.

The panel also argues that legalised wagering will generate tax incomes for the exchequer that could total up to $2bn a year.

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

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

It would also open a substantial service opportunity for licensed bookies and worldwide online sports betting companies to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by helping make transactions associated with sports betting more transparent.

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

But numerous also think, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it appealing enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be prohibited wagering because (some) individuals would not desire to leave an audit trail by going into the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to position huge bets will never ever gamble legally.

Approval question

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

"Even however many individuals are included in some sort of gaming - 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 different 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 a main panel for the first time, a minimum of an argument has actually ignited around a subject - which till now was thought about a taboo.