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 requiring 17 runs to win versus Australia.

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

He has made more than 10 employ the last thirty minutes - not to go over the match however to keep revising his bet.

Five minutes previously his money was on Australia, today as the Indian batsman gets ready to face the last over he's changed his mind.

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

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

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

For more than 3 years he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, illegal wagering syndicates grow in the nation.

'Black money'

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

With no legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest individual run scorer.

Most of these transactions involve so-called "black cash", 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 forbiding web gambling, there is absolutely nothing similar here.

And overseas wagering companies are using this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot people have signed up accounts with overseas firms.

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

But in spite of this, it is "offline gaming", done through phone calls which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications 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 been banned for two years after some players and group officials were found guilty of repairing parts of the match at the request of bookmakers.

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

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

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

It would also open a huge organization opportunity for certified bookies and international online sports betting companies to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue lots of, by helping make deals involved in sports betting more transparent.

"If you work along with wagering business, you will have a very effective technique of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are limitations.

"Definitely there will be illegal sports betting since (some) people would not desire to leave an audit trail by entering the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to place huge bets will never bet lawfully.

Approval question

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

"Despite the fact that numerous individuals are included in some sort of gaming - it's still a questionable issue for numerous," 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 difficult that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having actually been endorsed by a main panel for the first time, a minimum of an argument has ignited around a topic - which up until now was thought about a taboo.