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 versus Australia.
In his two-bedroom home situated in main Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.
He has actually made more than 10 calls in the last 30 minutes - not to discuss the match but to keep revising his bet.
Five minutes previously his cash was on Australia, however now as the Indian batsman prepares yourself to deal with the last over he's changed 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 finish.
"I have actually made $200 today," he says 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 prohibited in India.
Besides horse racing, sports betting of any kind is not allowed in India. Despite that, unlawful sports betting syndicates prosper in the country.
'Black money'
According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting wagering market is worth some $150bn a year. And much of that sports betting money is directed towards cricket.
With no legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest individual run scorer.
Most of these transactions include so-called "black money", which is cash not stated to the taxman.
The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law forbiding internet sports betting, there is absolutely nothing similar here.
And overseas 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 actually registered accounts with overseas companies.
"Legally you can escape [with this], as the law is uncertain for online gaming," states Mumbai- based legal representative HP Ranina.
But regardless of this, it is "offline sports betting", done through telephone call which dominate the marketplace.
Calls for legalisation
The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, saying it would help secure down on corruption in the country's favourite sport.
The Justice RM Lodha Commission was established to suggest modifications in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.
Two franchises have been banned for two years after some players and team officials were condemned of repairing parts of the match at the wish of bookies.
The panel also argues that legalised sports betting will bring in tax earnings for the exchequer that might amount to $2bn a year.
Even bettors feel that legalising sports betting is a move in the ideal instructions.
"I don't mind paying some money out my earnings, as long as I can bet openly," states our cricket bettor.
It would also open a substantial company chance for licensed bookies and global online sports betting companies to establish operations in India.
And it would help restrict match fixing in cricket and other sports betting, argue many, by helping make transactions associated with sports betting more transparent.
"If you work along with wagering business, you will have a very efficient approach of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.
But numerous also think, that the taxes imposed on the bettor and the bookie will need to be reasonable to make it attractive enough for them to bet legally.
However, there are constraints.
"Definitely there will be illegal wagering because (some) people wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.
He includes that individuals who use unaccounted cash to position big bets will never ever gamble legally.
Approval question
For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard concept to offer.
"Even though many individuals are associated with some sort of gambling - it's still a questionable problem for many," says our unnamed punter.
And considered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their area.
"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this becoming a reality anytime quickly."
Yet with the idea having been endorsed by an official panel for the first time, at least a dispute has actually fired up around a topic - which up until now was considered a taboo.
