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 go to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged guy is watching the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his best hand.

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

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

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

And a couple of minutes later on his prediction comes to life, 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 3 decades he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, illegal wagering distributes prosper in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting wagering market deserves some $150bn a year. And much of that sports betting cash is directed towards cricket.

With no 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 private run scorer.

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

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

And offshore sports betting business are using this loophole to draw Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore firms.

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

But in spite of this, it is "offline sports betting", done through call which control the market.

Require legalisation

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

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

Two franchises have actually been prohibited for 2 years after some gamers and group officials were condemned of fixing parts of the match at the wish of bookies.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the best instructions.

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

It would also open a substantial company opportunity for certified bookmakers and worldwide online wagering companies to establish operations in India.

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

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

But lots of likewise believe, that the taxes levied on the bettor 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 since (some) people wouldn't wish to leave an audit trail by entering the white market," states Mr Oborne.

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

Approval concern

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

"Even though lots of people are included in some sort of sports betting - it's still a questionable problem for many," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.

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

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of a debate has sparked around a topic - which up until now was considered a taboo.