Howzat? The clamour to legalise sports betting 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 runs to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged male is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right hand.

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

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

"I think India is winning, make the change," 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 says with a childlike glee.

For more than three decades he's been sports betting on cricket matches. We can't reveal 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, prohibited sports betting syndicates flourish in the country.

'Black cash'

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

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

Most of these transactions include so-called "black money", which is money not stated 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 forbiding web sports betting, there is absolutely nothing similar here.

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

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

But despite this, it is "offline gaming", done through telephone call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulative 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 prohibited for two years after some players and group authorities were found guilty of fixing parts of the match at the request of bookmakers.

The panel also argues that legalised sports betting will bring in tax incomes for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some cash out my earnings, as long as I can gamble openly," states our cricket bettor.

It would likewise open a substantial company opportunity for licensed bookmakers and global online wagering companies to establish operations in India.

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

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

But many likewise think, that the taxes imposed on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be prohibited sports betting since (some) individuals wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted cash to position big bets will never ever gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a tough concept to sell.

"Despite the fact that many people are associated with some sort of sports betting - it's still a controversial concern for lots of," says our unnamed punter.

And offered 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 difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of a dispute has actually ignited around a subject - which previously was thought about a taboo.