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 runs to win versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged man is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his ideal hand.

He has made more than 10 contact the last 30 minutes - not to talk about the match but to keep modifying his bet.

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

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

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

"I have made $200 today," he states with a childlike 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 unlawful in India.

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

'Black money'

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

Without any legal avenue, punters put 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 greatest specific run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, however unlike in the US which has a law restricting web sports betting, there is absolutely nothing similar here.

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

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

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

Calls for 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 help secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to recommend modifications in the functioning of India's cricket regulatory 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 authorities were discovered guilty of fixing parts of the match at the wish of bookies.

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

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

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

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

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

"If you work along with sports betting companies, you will have an extremely effective technique of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookmaker will need to be sensible to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be prohibited sports betting since (some) people would not want to leave an audit path by entering the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to put huge bets will never ever bet legally.

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 idea to sell.

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

And provided that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling in their territory.

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

Yet with the concept having been backed by a main panel for the very first time, at least a dispute has ignited around a subject - which previously was considered a taboo.