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 go to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged guy is seeing the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his best hand.

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

Five minutes previously his cash was on Australia, but now as the Indian batsman gets ready to face the last over he's altered his mind.

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

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

"I have 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 prohibited in India.

Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, unlawful sports betting distributes flourish in the country.

'Black cash'

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 sports betting cash is directed towards cricket.

With no legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can wager 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 cash not stated to the taxman.

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

And overseas wagering companies are using this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas firms.

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

But regardless of this, it is "offline gaming", done through call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was set up 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 emerged.

Two franchises have been prohibited for two years after some gamers and team officials were condemned of repairing parts of the match at the wish of bookies.

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

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

"I don't mind paying some cash out my earnings, as long as I can gamble publicly," says our cricket gambler.

It would likewise open a substantial business opportunity for certified bookies and international online sports betting companies to establish operations in India.

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

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

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

However, there are restrictions.

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

He includes that individuals who use unaccounted cash to position huge bets will never ever gamble legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a difficult concept to sell.

"Despite the fact that many individuals are involved in some sort of sports betting - it's still a controversial concern for many," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting 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 coming true anytime quickly."

Yet with the concept having been endorsed by an official panel for the very first time, a minimum of a debate has ignited around a subject - which previously was considered a taboo.