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 go to win against Australia.

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

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

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

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

And a couple of minutes later on his prediction comes true, as India wins the match in a nail-biting finish.

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

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

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

'Black cash'

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the highest private run scorer.

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

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

And offshore sports betting business are utilizing this loophole to lure Indians. Even though there are no online sports betting 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 uncertain for online sports betting," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline gaming", done through call which dominate the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, 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 regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been banned for 2 years after some gamers and team officials were discovered guilty of repairing parts of the match at the request of bookies.

The panel also argues that legalised sports betting will bring in tax revenues for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting is a move in the best instructions.

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

It would likewise open a big organization opportunity for licensed bookmakers and global online sports betting business 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 associated with gambling more transparent.

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

But numerous likewise believe, that the taxes levied on the gambler and the bookie will have to be sensible to make it attractive enough for them to bet lawfully.

However, there are limitations.

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

He includes that individuals who use unaccounted money to place huge bets will never gamble lawfully.

Approval question

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

"Despite the fact that lots of individuals are included in some sort of gaming - it's still a questionable issue for numerous," states our unnamed punter.

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

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

Yet with the idea having been backed by a main panel for the very first time, a minimum of a debate has actually fired up around a subject - which previously was considered a taboo.