Howzat? The clamour to legalise sports betting wagering 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 home situated in central Mumbai, a middle-aged guy is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.
He has made more than 10 employ the last thirty minutes - not to talk about the match but to keep modifying his bet.
Five minutes earlier his money was on Australia, now as the Indian batsman gets prepared to face 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 few minutes later his forecast becomes a reality, as India wins the match in a nail-biting finish.
"I have made $200 today," he states with a childlike glee.
For more than three decades 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 of any kind is not allowed India. Despite that, illegal wagering syndicates thrive in the country.
'Black cash'
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 gambling money is directed towards cricket.
With no legal avenue, punters position 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 include so-called "black cash", which is money not declared to the taxman.
The 1867 Public Gambling Act bars any sort of sports betting in India, however unlike in the US which has a law prohibiting internet gaming, there is absolutely nothing comparable here.
And overseas sports betting business 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 get away [with this], as the law is ambiguous for online sports betting," states Mumbai- based lawyer HP Ranina.
But despite this, it is "offline sports betting", done through telephone call which control the market.
Calls for legalisation
The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, saying it would assist secure down on corruption in the nation's preferred sport.
The Justice RM Lodha Commission was established to suggest 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 sports betting scandal came to light.
Two franchises have actually been prohibited for two years after some players and group officials were condemned of repairing parts of the match at the request of bookmakers.
The panel likewise argues that legalised wagering will bring in tax revenues for the exchequer that might total up to $2bn a year.
Even bettors feel that legalising sports betting is a relocation in the right direction.
"I don't mind paying some cash out my revenues, as long as I can bet openly," states our cricket gambler.
It would also open a huge service opportunity for certified bookies and global online wagering business to set up operations in India.
And it would help limit match repairing in cricket and other sports betting, argue many, by assisting make deals included in sports betting more transparent.
"If you work along with wagering companies, you will have a very efficient method of marking out match repairing," says George Oborne, who runs a mock wagering site, India Bet.
But numerous also think, that the taxes levied on the gambler and the bookmaker will need to be affordable to make it appealing enough for them to gamble lawfully.
However, there are constraints.
"Definitely there will be prohibited sports betting because (some) people would not desire to leave an audit trail by getting in the white market," states Mr Oborne.
He includes that individuals who use unaccounted money to place big bets will never ever bet legally.
Approval concern
For sports betting gambling to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a difficult concept to sell.
"Although many individuals are included in some sort of gaming - it's still a controversial problem for numerous," says our unnamed punter.
And considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling in their area.
"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this becoming a reality anytime soon."
Yet with the idea having been backed by an official panel for the first time, at least an argument has sparked around a topic - which till now was thought about a taboo.