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 go to win against Australia.
In his two-bedroom house situated in main Mumbai, a middle-aged man is enjoying the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right hand.
He has made more than 10 calls in the last thirty minutes - not to talk about the match but to keep modifying his bet.
Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares to deal with the last over he's altered his mind.
"I think India is winning, make the modification," he informs his bookie on the phone.
And a couple of minutes later on his forecast 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 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.
Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, illegal wagering syndicates flourish in the country.
'Black money'
According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting market is worth some $150bn a year. And much of that sports betting cash is directed towards cricket.
Without any legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.
Most of these transactions involve so-called "black cash", which is cash not stated to the taxman.
The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law forbiding internet gambling, there is nothing comparable here.
And overseas sports betting business are utilizing this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with overseas companies.
"Legally you can escape [with this], as the law is ambiguous for online gaming," states Mumbai- based legal representative HP Ranina.
But regardless of this, it is "offline sports betting", done through call which control the market.
Require legalisation
The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would help clamp down on corruption in the country's preferred sport.
The Justice RM Lodha Commission was established to recommend modifications in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.
Two franchises have been banned for 2 years after some players and team authorities were discovered guilty of repairing parts of the match at the behest of bookmakers.
The panel likewise argues that legalised sports betting will bring in tax revenues for the exchequer that could total up to $2bn a year.
Even gamblers feel that legalising sports betting wagering is a move in the best direction.
"I don't mind paying some cash out my earnings, as long as I can gamble openly," states our cricket bettor.
It would likewise open a huge company opportunity for certified bookmakers and worldwide online wagering companies to set up operations in India.
And it would help limit match fixing in cricket and other sports betting, argue many, by helping make transactions involved in gambling more transparent.
"If you work along with sports betting companies, you will have an extremely effective technique of marking out match fixing," says George Oborne, who runs a mock wagering website, India Bet.
But lots of also think, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it appealing enough for them to bet legally.
However, there are restrictions.
"Definitely there will be unlawful wagering because (some) individuals wouldn't wish to leave an audit path by entering the white market," states Mr Oborne.
He adds that people 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 develop a brand-new law, and politically this will be a hard concept to sell.
"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable issue for numerous," states 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 gambling in their territory.
"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime soon."
Yet with the concept having been endorsed by an official panel for the very first time, at least a dispute has ignited around a subject - which previously was thought about a taboo.