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 house located in main Mumbai, a middle-aged guy is watching the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.
He has actually made more than 10 contact the last thirty minutes - not to talk about the match however to keep modifying his bet.
Five minutes previously his money was on Australia, but now as the Indian batsman prepares yourself to deal with the last over he's altered his mind.
"I believe India is winning, make the change," he tells his bookie on the phone.
And a few minutes later his forecast comes to life, 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 years he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.
Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting syndicates prosper in the nation.
'Black cash'
According to the Doha-based International Centre for sports betting Security, India's illegal sports betting market is worth 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 deals involve so-called "black money", which is money not declared to the taxman.
The 1867 Public Gambling Act bars any type of gaming in India, however unlike in the US which has a law prohibiting internet gambling, there is absolutely nothing similar here.
And offshore wagering business are utilizing this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have actually registered accounts with offshore companies.
"Legally you can get away [with this], as the law is uncertain for online gambling," says Mumbai- based attorney HP Ranina.
But in spite of this, it is "offline gaming", done through phone calls which control the marketplace.
Require legalisation
The clamour to legalise sports betting 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 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 actually been prohibited for 2 years after some players and team officials were condemned of repairing parts of the match at the wish of bookies.
The panel likewise argues that legalised sports betting will generate tax earnings for the exchequer that might total up to $2bn a year.
Even gamblers feel that legalising sports betting is a move in the right direction.
"I don't mind paying some money out my revenues, as long as I can gamble publicly," says our cricket gambler.
It would likewise open a huge service chance for licensed bookmakers and worldwide online sports betting business to establish operations in India.
And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by assisting make transactions involved in gambling more transparent.
"If you work along with wagering business, you will have an extremely effective approach of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.
But many likewise believe, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to gamble lawfully.
However, there are restrictions.
"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 use unaccounted money to position huge bets will never ever gamble lawfully.
Approval question
For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a difficult idea to offer.
"Although many individuals are involved in some sort of gambling - it's still a controversial issue for many," states our unnamed punter.
And given that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.
"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime quickly."
Yet with the concept having been backed by an official panel for the very first time, at least a dispute has actually sparked around a subject - which previously was considered a taboo.