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 needing 17 runs to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man 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.

He has actually made more than 10 calls in the last thirty minutes - not to talk about the match but to keep modifying his bet.

Five minutes earlier his money 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 informs his bookmaker on the phone.

And a couple of minutes later his forecast becomes a reality, 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 three decades he's been banking on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting syndicates prosper in the nation.

'Black money'

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

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

Most of these deals include so-called "black money", which is cash not declared to the taxman.

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

And overseas sports betting companies are using this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

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

But regardless of this, it is "offline sports betting", done through call which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the functioning 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 banned for 2 years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookies.

The panel also 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 relocation in the right instructions.

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

It would likewise open a huge organization opportunity for certified bookies and global online wagering companies to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by helping make deals included in gambling more transparent.

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

But numerous also believe, that the taxes levied on the bettor and the bookie will need to be affordable to make it attractive enough for them to gamble legally.

However, there are restrictions.

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

He adds that people who utilize unaccounted cash to put big bets will never ever bet legally.

Approval question

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

"Despite the fact that lots of people are associated with some sort of gambling - it's still a controversial problem for lots of," states our unnamed punter.

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

Yet with the idea having actually been backed by a main panel for the very first time, at least a debate has fired up around a topic - which previously was considered a taboo.