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

He has actually made more than 10 employ the last 30 minutes - not to talk about the match however to keep revising his bet.

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

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

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

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

For more than 3 decades he's been banking on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, illegal wagering syndicates thrive in the country.

'Black cash'

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

Without any legal avenue, punters place bets utilizing 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 involve so-called "black money", which is cash not declared to the taxman.

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

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

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

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

Calls for 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 country's favourite sport.

The Justice RM Lodha Commission was set up to suggest changes 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 been prohibited for two years after some players and team officials were discovered guilty of repairing parts of the match at the behest of bookies.

The panel likewise argues that legalised sports betting will generate tax profits for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the best direction.

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

It would likewise open a big organization opportunity for licensed bookmakers and international online sports betting business to set up operations in India.

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

"If you work along with sports betting business, you will have a very reliable method of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also think, that the taxes imposed on the bettor and the bookmaker will have to be affordable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful wagering since (some) people wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that people 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 brand-new law, and politically this will be a hard concept to offer.

"Although numerous people are included in some sort of sports betting - it's still a controversial problem for lots of," states 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 process is so long and difficult 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 actually been backed by a main panel for the first time, a minimum of an argument has actually sparked around a topic - which previously was thought about a taboo.