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 needing 17 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his best hand.

He has actually made more than 10 contact the last 30 minutes - not to discuss the match however to keep revising his bet.

Five minutes earlier his money was on Australia, now as the Indian batsman prepares yourself to face the last over he's altered his mind.

"I think India is winning, make the modification," he tells his bookie on the phone.

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

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

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

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

'Black money'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

Most 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, but unlike in the US which has a law prohibiting internet sports betting, there is nothing comparable here.

And overseas sports betting business are utilizing this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas firms.

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

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

Require legalisation

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

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

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

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

"I don't mind paying some money out my profits, as long as I can bet publicly," states our cricket bettor.

It would also open a huge service opportunity for licensed bookies and global online wagering companies to establish operations in India.

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

"If you work alongside sports betting companies, you will have a really effective approach of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes levied on the bettor and the bookie will have to be sensible to make it appealing enough for them to bet lawfully.

However, there are restrictions.

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

He adds that people who utilize unaccounted cash to put big bets will never 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 tough concept to offer.

"Although lots of people are associated with some sort of gambling - it's still a questionable concern for numerous," says our unnamed punter.

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

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime quickly."

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

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