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 against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged man is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has made more than 10 calls in the last 30 minutes - not to discuss the match but to keep modifying his bet.

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

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

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

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

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

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

'Black money'

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

With no legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these deals include so-called "black cash", which is money not stated to the taxman.

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

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

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

But despite this, it is "offline sports betting", done through phone calls which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest changes 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 emerged.

Two franchises have been prohibited for 2 years after some gamers and group authorities were condemned of fixing parts of the match at the wish of bookmakers.

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

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

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

It would also open a big organization opportunity for licensed bookies and worldwide online wagering business to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue many, by helping make deals associated with gambling more transparent.

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

But numerous likewise think, that the taxes levied on the gambler and the bookmaker will have to be sensible to make it attractive enough for them to bet legally.

However, there are limitations.

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

He adds that individuals who utilize unaccounted money to place big bets will never bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard concept to sell.

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

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

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

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 till now was considered a taboo.