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 requiring 17 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone 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 money was on Australia, however 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 informs his bookie on the phone.

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

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

For more than 3 decades he's been wagering 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, illegal wagering distributes grow in the nation.

'Black cash'

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

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

The majority 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, however unlike in the US which has a law restricting web gambling, there is nothing similar here.

And overseas wagering business are using this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually registered accounts with overseas companies.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend modifications in the functioning 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 2 years after some gamers and group officials were condemned of repairing parts of the match at the wish of bookmakers.

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

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

"I do not mind paying some money out my profits, as long as I can bet openly," states our cricket gambler.

It would likewise open a big business opportunity for certified bookies and worldwide online sports betting companies to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals included in sports betting more transparent.

"If you work along with wagering business, you will have an extremely efficient method of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

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

He includes that people who utilize unaccounted cash to position big bets will never ever gamble lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a difficult concept to offer.

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

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

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

Yet with the concept having been backed by an official panel for the very first time, at least a debate has actually ignited around a subject - which up until now was considered a taboo.