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 runs to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his ideal hand.

He has actually made more than 10 calls in the last thirty minutes - not to discuss the match but to keep revising his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman gets ready to face 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 on his prediction becomes a reality, as India wins the match in a nail-biting finish.

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

For more than 3 years he's been sports betting on cricket matches. We can't expose 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, illegal sports betting syndicates grow 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 gambling money is directed towards cricket.

Without any legal avenue, punters place 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 specific run scorer.

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

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

And overseas wagering business are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually registered accounts with offshore firms.

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

But regardless of this, it is "offline gaming", done through call which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend changes 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 banned for 2 years after some players and group officials were condemned of repairing parts of the match at the request of bookmakers.

The panel likewise argues that legalised sports betting will generate tax earnings for the exchequer that might amount to $2bn a year.

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

"I do not mind paying some money out my profits, as long as I can bet openly," says our cricket gambler.

It would likewise open a big service opportunity for licensed bookies and global online wagering business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue numerous, by helping make transactions associated with gambling more transparent.

"If you work along with sports betting companies, you will have a really reliable technique of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes levied on the gambler and the bookie will have to be affordable to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be unlawful wagering due to the fact that (some) people would not desire to leave an audit path by going into the white market," states Mr Oborne.

He includes that people who use unaccounted money to position big bets will never ever gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a difficult concept to sell.

"Despite the fact that numerous people are associated with some sort of sports betting - it's still a questionable issue for numerous," says our unnamed punter.

And offered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting in their area.

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a reality anytime soon."

Yet with the idea having actually been endorsed by an official panel for the first time, at least a dispute has fired up around a subject - which previously was considered a taboo.