Howzat? The clamour to legalise sports betting 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 against Australia.

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

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

Five minutes previously his cash was on Australia, and now as the Indian batsman gets all set to deal with the last over he's changed his mind.

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

And a few minutes later on his prediction comes to life, as India wins the match in a nail-biting finish.

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

For more than three decades he's been wagering 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 allowed India. Despite that, prohibited sports betting syndicates thrive in the country.

'Black cash'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law restricting web sports betting, there is absolutely nothing comparable here.

And offshore sports betting companies are utilizing this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with offshore firms.

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

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

Require 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 assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest modifications 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 gamers and team authorities were condemned of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised sports betting will bring in tax incomes for the exchequer that could total up to $2bn a year.

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

"I do not mind paying some money out my earnings, as long as I can bet publicly," says our cricket bettor.

It would also open a huge organization chance for certified bookies and worldwide online wagering business to set up operations in India.

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

"If you work along with wagering companies, you will have a very reliable approach of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But many also think, that the taxes levied on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

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

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

Approval question

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

"Even though lots of people are associated with some sort of sports betting - it's still a controversial issue for numerous," says our unnamed punter.

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

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime soon."

Yet with the idea having been backed by a main panel for the very first time, at least a debate has actually sparked around a topic - which previously was considered a taboo.