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 versus Australia.

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

He has actually made more than 10 hire the last 30 minutes - not to talk about the match but to keep revising his bet.

Five minutes earlier his cash was on Australia, today as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

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

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

For more than 3 decades he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not permitted in India. Despite that, prohibited sports betting syndicates prosper in the nation.

'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 gambling money is directed towards cricket.

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

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

The 1867 Public Gambling Act bars any kind of gaming in India, but unlike in the US which has a law prohibiting internet gaming, there is nothing similar here.

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

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

But in spite of this, it is "offline gaming", done through call which control the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend changes 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 actually been prohibited 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 likewise argues that legalised wagering will generate tax revenues for the exchequer that might amount to $2bn a year.

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

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

It would also open a substantial company opportunity for licensed bookies and international online wagering companies to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with sports betting more transparent.

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

But lots of likewise believe, that the taxes imposed on the bettor and the bookmaker will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering due to the fact that (some) people would not wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to position huge bets will never gamble legally.

Approval question

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

"Even though numerous individuals are associated with some sort of gambling - it's still a questionable problem 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 challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

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