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 located in main Mumbai, a middle-aged male is viewing the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his best hand.

He has made more than 10 employ the last thirty minutes - not to discuss the match however to keep revising his bet.

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

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

And a couple of minutes later his forecast comes to life, 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 years he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, unlawful sports betting distributes grow in the country.

'Black cash'

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

With no legal avenue, punters place 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 money", which is money not declared to the taxman.

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

And offshore wagering business are utilizing this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot people have signed up accounts with offshore companies.

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

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, stating it would help clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up 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 wagering scandal came to light.

Two franchises have been banned for 2 years after some players and team officials were discovered guilty of fixing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.

"I do not mind paying some money out my earnings, as long as I can gamble openly," states our cricket gambler.

It would also open a substantial service opportunity for licensed bookies and worldwide online wagering companies to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by assisting make deals involved in gambling more transparent.

"If you work alongside sports betting business, you will have a really effective method of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But many likewise 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 limitations.

"Definitely there will be illegal wagering due to the fact that (some) individuals would not wish to leave an audit path by going into the white market," says Mr Oborne.

He includes that people who use unaccounted money to position huge 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 tough idea to sell.

"Even though many individuals are associated with some sort of sports betting - it's still a questionable problem for numerous," states our unnamed punter.

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

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this becoming a reality anytime quickly."

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