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 go to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his best hand.

He has made more than 10 contact the last thirty minutes - not to go over the match but to keep modifying his bet.

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

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

And a few minutes later his prediction comes to life, 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 3 decades he's been wagering 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, prohibited wagering distributes thrive in the nation.

'Black money'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

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

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law prohibiting web gambling, there is nothing comparable here.

And offshore wagering companies are using this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore firms.

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

But despite this, it is "offline sports betting", done through call which control the market.

Require legalisation

The clamour to legalise wagering 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 nation's favourite sport.

The Justice RM Lodha Commission was established 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 sports betting scandal came to light.

Two franchises have been banned for 2 years after some gamers and group officials were found guilty of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised wagering will bring in tax earnings for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a relocation in the best instructions.

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

It would also open a huge service opportunity for certified bookmakers and global online sports betting business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue lots of, by assisting make transactions included in gambling more transparent.

"If you work together with wagering business, you will have an extremely effective method of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous likewise believe, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are constraints.

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

He adds that people who use unaccounted money to place big bets will never gamble lawfully.

Approval concern

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

"Despite the fact that lots of people are involved in some sort of gaming - it's still a controversial concern for many," says our unnamed punter.

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

"The process is so long and challenging 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 idea having been endorsed by an official panel for the very first time, at least a debate has actually sparked around a topic - which previously was thought about a taboo.