Howzat? The clamour to legalise sports wagering 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 main Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

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

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

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

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

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

Aside from horse racing, sports betting wagering of any kind is not enabled in India. Despite that, illegal sports betting syndicates prosper in the nation.

'Black cash'

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

Without any legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can bank 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 cash", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, however unlike in the US which has a law forbiding internet sports betting, there is absolutely nothing comparable here.

And offshore sports betting companies are using this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend 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 been prohibited for two years after some gamers and team officials were condemned of repairing parts of the match at the request of bookmakers.

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

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

"I do not mind paying some money out my earnings, as long as I can gamble openly," states our cricket bettor.

It would likewise open a big company opportunity for certified bookmakers and global online sports betting companies to set up operations in India.

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

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

But lots of also think, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited wagering since (some) individuals would not wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted cash to place big bets will never gamble lawfully.

Approval question

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

"Despite the fact that lots of individuals are included in some sort of sports betting - it's still a controversial concern for lots of," states our unnamed punter.

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

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

Yet with the concept having been endorsed by an official panel for the very first time, at least a dispute has sparked around a subject - which up until now was thought about a taboo.