Howzat? The clamour to legalise sports betting 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 house situated in main Mumbai, a middle-aged man is enjoying the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right hand.

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

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

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

And a few minutes later on his forecast comes true, 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 3 years 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 of any kind is not allowed India. Despite that, illegal sports betting distributes flourish in the nation.

'Black money'

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

With no legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the highest specific run scorer.

The majority of these transactions include so-called "black money", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any sort of gaming in India, but 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 entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have registered accounts with offshore companies.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend 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 prohibited for 2 years after some gamers and group officials were discovered guilty of fixing parts of the match at the behest of bookies.

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

Even bettors feel that legalising sports betting is a move in the best 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 huge organization chance for certified bookies and worldwide online sports betting companies to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions included in sports betting more transparent.

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

But numerous likewise believe, that the taxes imposed on the bettor and the bookmaker will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) people would not wish to leave an audit path by going into the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to put big bets will never bet lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a hard idea to sell.

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

And given that India has a federal structural - each state will need to also pass a separate 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 becoming a reality anytime soon."

Yet with the concept having been backed by an official panel for the very first time, a minimum of a debate has actually sparked around a subject - which till now was thought about a taboo.