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 requiring 17 runs to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is enjoying the video game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right hand.

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

Five minutes previously his money was on Australia, and now as the Indian batsman prepares to deal with the last over he's altered his mind.

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

And a couple of minutes later on his prediction comes real, 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 wagering of any kind is not enabled in India. Despite that, illegal sports betting distributes prosper in the nation.

'Black cash'

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

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

The majority of these transactions involve so-called "black money", which is money not stated to the taxman.

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

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

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

But regardless of this, it is "offline sports betting", done through phone calls which control the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up 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 players and team authorities were condemned of repairing parts of the match at the wish of bookies.

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

Even gamblers feel that legalising sports betting wagering is a move in the ideal instructions.

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

It would also open a big business opportunity for certified bookmakers and international online wagering business to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by assisting make deals involved in gambling more transparent.

"If you work together with wagering companies, you will have an extremely efficient approach of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise believe, that the taxes levied on the gambler and the bookmaker will need to be affordable to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals would not wish to leave an audit path by entering the white market," states Mr Oborne.

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

Approval concern

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

"Even though many individuals are involved in some sort of gaming - it's still a controversial problem for many," states our unnamed punter.

And provided that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their area.

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

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

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