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 runs to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged man is seeing the video game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

Five minutes previously his cash was on Australia, but now as the Indian batsman prepares to deal with the last over he's changed his mind.

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

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

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

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

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, illegal wagering syndicates grow in the country.

'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 sports betting money is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest individual run scorer.

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

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

And offshore sports betting business are utilizing this loophole to lure Indians. Although there are no online wagering 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 unclear for online gaming," says Mumbai- based legal representative HP Ranina.

But despite this, it is "offline gambling", done through phone calls which dominate the market.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, saying it would help clamp down on corruption in the nation's preferred sport.

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

Two franchises have been banned for 2 years after some players and team authorities were condemned of fixing parts of the match at the behest of bookmakers.

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

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

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," says our cricket bettor.

It would also open a substantial organization chance for licensed bookies and worldwide online sports betting companies to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by assisting make transactions included in gambling more transparent.

"If you work together with wagering companies, you will have an extremely reliable approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are restrictions.

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

He includes that individuals who utilize unaccounted money to put big bets will never bet lawfully.

Approval question

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

"Despite the fact that many individuals are associated with some sort of gaming - it's still a controversial concern for many," states our unnamed punter.

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

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

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