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 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 cellphone glued to his right-hand man.

He has actually made more than 10 calls in the last 30 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 deal with the last over he's altered his mind.

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

And a few minutes later his prediction 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 three years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful sports betting distributes flourish in the country.

'Black cash'

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

Without any legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law forbiding internet sports betting, there is absolutely nothing similar here.

And offshore wagering companies are using this loophole to tempt Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas companies.

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

But regardless of this, it is "offline gaming", done through phone calls which dominate the market.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, stating it would help clamp 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 wagering scandal emerged.

Two franchises have actually been prohibited for 2 years after some players and group officials were discovered guilty of repairing parts of the match at the request of bookmakers.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that might amount to $2bn a year.

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

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

It would also open a substantial service chance for licensed bookies and international online wagering business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by helping make transactions associated with gambling more transparent.

"If you work together with sports betting companies, you will have an extremely reliable method of stamping out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise think, 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 constraints.

"Definitely there will be unlawful wagering since (some) people wouldn't wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to put big bets will never ever gamble lawfully.

Approval concern

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

"Although many individuals are associated with some sort of gaming - it's still a controversial problem for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this becoming a truth anytime quickly."

Yet with the idea having actually been backed by a main panel for the first time, at least an argument has actually ignited around a subject - which until now was thought about a taboo.