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 versus Australia.

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

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

Five minutes earlier his money was on Australia, and now as the Indian batsman gets prepared to deal with the last over he's altered his mind.

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

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

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

For more than three years 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 of any kind is not allowed in India. Despite that, illegal sports betting syndicates prosper in the nation.

'Black money'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

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

And overseas wagering companies are utilizing this loophole to tempt Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been prohibited for 2 years after some gamers and group authorities were condemned of repairing parts of the match at the wish of bookmakers.

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

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

"I don't mind paying some money out my profits, as long as I can bet publicly," says our cricket gambler.

It would also open a substantial business opportunity for licensed bookmakers and global online sports betting business to set up operations in India.

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

"If you work alongside sports betting companies, you will have an extremely effective method of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful sports betting because (some) individuals wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to position huge bets will never bet lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a difficult idea to offer.

"Although lots of people are associated with some sort of sports betting - it's still a questionable concern for numerous," says our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a different 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 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 dispute has actually ignited around a subject - which up until now was considered a taboo.