For Sports Gambling to Be Legalised

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 against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

He has made more than 10 employ the last thirty minutes - not to go over the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I believe India is winning, make the change," he tells his bookie on the phone.

And a few minutes later on his prediction comes true, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childish 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 illegal in India.

Other than horse racing, sports betting wagering of any kind is not enabled in India. Despite that, unlawful sports betting syndicates grow 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 cash is directed towards cricket.

With no legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these transactions involve so-called "black cash", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any sort of gaming in India, however unlike in the US which has a law forbiding web gaming, there is nothing similar here.

And offshore wagering companies are using this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

"Legally you can escape [with this], as the law is unclear for online sports betting," states Mumbai- based legal representative 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 wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to recommend 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 gamers and group authorities were found guilty of fixing parts of the match at the request of bookies.

The panel likewise argues that legalised wagering will bring in tax profits for the exchequer that could amount to $2bn a year.

Even bettors feel that legalising sports betting is a move in the ideal direction.

"I don't mind paying some cash out my profits, as long as I can gamble openly," states our cricket bettor.

It would likewise open a big business opportunity for licensed bookmakers and global online sports betting business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by helping make transactions associated with sports betting more transparent.

"If you work alongside wagering business, you will have a really efficient approach of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But many also believe, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be prohibited sports betting due to the fact that (some) people would not want to leave an audit path by getting in the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to put big bets will never gamble legally.

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 tough idea to offer.

"Despite the fact that many individuals are associated with some sort of gaming - it's still a controversial issue for numerous," states our unnamed punter.

And provided that India has a - each state will need to also pass a different law to legalise sports betting gambling in their area.

"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 a main panel for the very first time, a minimum of an argument has actually ignited around a topic - which up until now was thought about a taboo.