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 needing 17 runs to win versus Australia.
In his two-bedroom house located in central Mumbai, a middle-aged guy is watching the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right-hand man.
He has actually made more than 10 contact the last thirty minutes - not to go over the match however to keep modifying his bet.
Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares yourself to face the last over he's altered his mind.
"I believe India is winning, make the modification," he tells his bookmaker on the phone.
And a couple of minutes later his forecast becomes a reality, as India wins the match in a nail-biting surface.
"I have actually made $200 today," he states with a childish 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 enabled in India. Despite that, prohibited wagering distributes thrive in the nation.
'Black money'
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 gambling money is directed towards cricket.
With no legal opportunity, 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 greatest specific 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 type of gambling in India, however unlike in the US which has a law prohibiting internet gambling, there is absolutely nothing comparable here.
And offshore sports betting companies are using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot people have registered accounts with overseas companies.
"Legally you can escape [with this], as the law is ambiguous for online gambling," states Mumbai- based lawyer HP Ranina.
But despite this, it is "offline sports betting", done through call which control the marketplace.
Calls for legalisation
The clamour to legalise wagering 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 country's preferred sport.
The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.
Two franchises have been prohibited for 2 years after some players and team officials were discovered guilty of fixing parts of the match at the wish of bookmakers.
The panel also argues that legalised wagering will bring in tax profits for the exchequer that could total up to $2bn a year.
Even gamblers feel that legalising sports betting wagering is a relocation in the right direction.
"I do not mind paying some cash out my revenues, as long as I can bet openly," says our cricket bettor.
It would also open a substantial organization chance for licensed bookies and international online sports betting business to establish operations in India.
And it would help limit match repairing in cricket and other sports betting, argue many, by helping make deals involved in sports betting more transparent.
"If you work alongside wagering companies, you will have a really effective approach of marking out match repairing," states George Oborne, who runs a mock wagering site, India Bet.
But many likewise think, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it appealing enough for them to gamble legally.
However, there are constraints.
"Definitely there will be unlawful wagering due to the fact that (some) individuals would not wish to leave an audit trail by getting in the white market," states Mr Oborne.
He adds that individuals who utilize unaccounted cash to put big bets will never gamble lawfully.
Approval concern
For sports betting to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a tough concept to offer.
"Despite the fact that many individuals are included in some sort of sports betting - it's still a controversial concern for many," states our unnamed punter.
And given that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their territory.
"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."
Yet with the concept having been endorsed by an official panel for the very first time, at least an argument has actually ignited around a subject - which previously was considered a taboo.