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 reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

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

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

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

And a couple of minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

"I have made $200 today," he says with a childlike glee.

For more than 3 years he's been banking on cricket matches. We can't expose his name as what he's doing is illegal in India.

Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful wagering syndicates thrive in the nation.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering market is worth some $150bn a year. And much of that sports betting money is directed towards cricket.

Without any legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these deals include so-called "black money", which is cash 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 restricting internet gambling, there is absolutely nothing comparable here.

And overseas sports betting companies are using this loophole to tempt Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with offshore firms.

"Legally you can get away [with this], as the law is ambiguous for online gaming," 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 wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, stating it would help secure down on corruption in the nation's favourite 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 wagering scandal emerged.

Two franchises have been prohibited for two years after some gamers and group officials were discovered guilty of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will revenues for the exchequer that might total up to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the right direction.

"I do not mind paying some cash out my earnings, as long as I can bet publicly," states our cricket bettor.

It would likewise open a substantial service chance for licensed bookmakers and worldwide online sports betting business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by helping make deals involved in gambling more transparent.

"If you work alongside sports betting companies, you will have a very effective method of marking out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of also think, that the taxes imposed on the bettor and the bookie will have to be sensible to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be illegal wagering due to the fact that (some) individuals would not desire to leave an audit path by entering the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to put big bets will never gamble lawfully.

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 tough concept to sell.

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a controversial concern for numerous," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their territory.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having been endorsed by a main panel for the very first time, a minimum of an argument has actually ignited around a subject - which previously was considered a taboo.