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 requiring 17 runs to win against Australia.
In his two-bedroom home situated in main Mumbai, a middle-aged man is watching the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.
He has actually made more than 10 employ the last 30 minutes - not to go over the match but to keep revising his bet.
Five minutes previously his money was on Australia, today as the Indian batsman prepares yourself to deal with the last over he's changed his mind.
"I believe India is winning, make the change," he informs his bookmaker on the phone.
And a few minutes later his prediction becomes a reality, as India wins the match in a nail-biting finish.
"I have actually 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 unlawful in India.
Aside from horse racing, sports betting wagering of any kind is not enabled in India. Despite that, illegal wagering distributes thrive in the country.
'Black money'
According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering market is worth some $150bn a year. And much of that gambling money is directed towards cricket.
Without any legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest individual run scorer.
The majority of these transactions involve so-called "black cash", which is cash not declared to the taxman.
The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law prohibiting web gaming, there is nothing similar here.
And offshore wagering business are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with offshore companies.
"Legally you can escape [with this], as the law is uncertain for online gaming," states Mumbai- based lawyer HP Ranina.
But despite this, it is "offline sports betting", done through phone calls which dominate the marketplace.
Require legalisation
The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would help secure down on corruption in the country's preferred sport.
The Justice RM Lodha Commission was set up to recommend changes in the functioning 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 players and team officials were found guilty of repairing parts of the match at the behest of bookies.
The panel also argues that legalised wagering will generate 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 cash out my profits, as long as I can bet publicly," says our cricket gambler.
It would also open a substantial company chance for certified bookmakers and global online sports betting companies to establish operations in India.
And it would assist limit match repairing in cricket and other sports betting, argue lots of, by assisting make deals associated with gambling more transparent.
"If you work alongside sports betting business, you will have a very efficient method of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.
But lots of likewise believe, that the taxes levied on the gambler and the bookmaker will have to be sensible to make it attractive enough for them to gamble lawfully.
However, there are constraints.
"Definitely there will be unlawful wagering since (some) people wouldn't wish to leave an audit trail by getting in the white market," says Mr Oborne.
He includes that people who use unaccounted cash to position big bets will never bet lawfully.
Approval question
For sports betting to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a tough idea to sell.
"Although numerous individuals are associated with some sort of gambling - it's still a controversial issue for lots of," states 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 gambling in their area.
"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."
Yet with the idea having been backed by a main panel for the very first time, a minimum of a dispute has fired up around a topic - which previously was thought about a taboo.
