Howzat? The clamour to legalise sports betting wagering 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 requiring 17 runs to win against Australia.

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

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

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

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

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

"I have actually made $200 today," he says 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 unlawful in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering distributes flourish in the nation.

'Black money'

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 avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.

The majority of these deals include so-called "black cash", which is money 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 internet sports betting, there is nothing similar here.

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

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the performance 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 actually been banned for 2 years after some gamers and team officials were discovered guilty of fixing parts of the match at the request of bookmakers.

The panel likewise argues that legalised wagering will generate tax earnings for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a huge company chance for licensed bookmakers and international online wagering business to set up operations in India.

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

"If you work alongside sports betting business, you will have a really efficient technique of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But many also think, that the taxes levied on the bettor and the bookie will have to be sensible to make it appealing enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) people wouldn't wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to place big bets will never ever bet lawfully.

Approval question

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

"Even though lots of people are involved in some sort of sports betting - it's still a controversial concern for lots of," states our unnamed punter.

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

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

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of an argument has actually ignited around a topic - which previously was considered a taboo.