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 versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged guy is seeing 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 hire the last 30 minutes - not to talk about the match however to keep revising his bet.

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

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

And a couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

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

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful wagering distributes grow 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 sports betting cash is directed towards cricket.

With no legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these deals involve so-called "black money", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law prohibiting internet sports betting, there is nothing comparable here.

And overseas wagering business are utilizing this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with offshore firms.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering 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 request of bookies.

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

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

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

It would also open a huge service chance for certified bookmakers and global online wagering business to set up operations in India.

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

"If you work along with wagering companies, you will have a very reliable method of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But many likewise think, that the taxes levied on the gambler and the bookie will need to be reasonable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful wagering due to the fact that (some) individuals wouldn't desire to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that people who use unaccounted money to put big bets will never ever gamble lawfully.

Approval question

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

"Even though lots of people are associated with some sort of gambling - it's still a questionable issue for many," says our unnamed punter.

And provided that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their area.

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having been backed by an official panel for the very first time, a minimum of an argument has sparked around a subject - which till now was considered a taboo.