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 needing 17 go to win against Australia.

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

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

Five minutes previously his cash was on Australia, and now as the Indian batsman prepares yourself 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 becomes a reality, as India wins the match in a nail-biting finish.

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

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

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

'Black money'

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 cash is directed towards cricket.

Without any legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest specific 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 type of gaming in India, however unlike in the US which has a law forbiding web sports betting, there is nothing comparable here.

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

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

But in spite of this, it is "offline gambling", done through telephone call which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest 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 wagering scandal emerged.

Two franchises have actually been prohibited for two years after some players and team authorities were condemned of fixing parts of the match at the request of bookmakers.

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

Even bettors feel that legalising sports betting wagering is a move in the ideal direction.

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

It would also open a huge company opportunity for certified bookies and worldwide online wagering business to set up operations in India.

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

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

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

However, there are limitations.

"Definitely there will be prohibited wagering due to the fact that (some) people wouldn't want to leave an audit trail by entering the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to put huge bets will never 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.

"Despite the fact that many people are involved in some sort of sports betting - it's still a controversial concern for many," states 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 tricky that it will take years," says Mr Ranina."That's why, we are negative about this becoming a reality anytime quickly."

Yet with the concept having been endorsed by an official panel for the very first time, at least a dispute has actually sparked around a subject - which till now was considered a taboo.