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 go to win against Australia.
In his two-bedroom home situated in main Mumbai, a middle-aged man is enjoying the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his ideal hand.
He has made more than 10 calls in the last 30 minutes - not to discuss the match however to keep revising 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 change," he tells his bookmaker on the phone.
And a few minutes later his prediction comes to life, as India wins the match in a nail-biting finish.
"I have made $200 today," he states with a childish glee.
For more than 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.
Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting distributes grow in the country.
'Black money'
According to the Doha-based International Centre for sports betting Security, India's illegal sports betting wagering market is worth some $150bn a year. And much of that gambling cash is directed towards cricket.
Without any legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.
Most of these deals involve so-called "black money", which is money not stated to the taxman.
The 1867 Public Gambling Act bars any type of gaming in India, however unlike in the US which has a law restricting web gambling, there is absolutely nothing similar here.
And overseas sports betting companies are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot individuals have signed up accounts with offshore firms.
"Legally you can escape [with this], as the law is unclear for online gaming," says Mumbai- based legal representative HP Ranina.
But regardless of this, it is "offline gaming", done through call which dominate the marketplace.
Require legalisation
The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the country's favourite sport.
The Justice RM Lodha Commission was established 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 emerged.
Two franchises have actually been prohibited for two years after some players and group authorities were condemned of repairing parts of the match at the request of bookies.
The panel also argues that legalised sports betting will bring in tax incomes for the exchequer that could total up to $2bn a year.
Even gamblers feel that legalising sports betting is a move in the best instructions.
"I do not mind paying some money out my profits, as long as I can gamble openly," says our cricket bettor.
It would also open a huge business chance for certified bookmakers and international online wagering companies to establish operations in India.
And it would help restrict match repairing in cricket and other sports betting, argue many, by assisting make deals associated with gambling more transparent.
"If you work together with wagering companies, you will have a really efficient technique of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.
But lots of also believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it attractive enough for them to bet legally.
However, there are limitations.
"Definitely there will be illegal wagering because (some) people would not wish to leave an audit path by entering the white market," says Mr Oborne.
He adds that people who utilize unaccounted money to place big bets will never ever bet lawfully.
Approval concern
For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a hard concept to sell.
"Although many individuals are associated with some sort of gaming - it's still a questionable concern for numerous," states our unnamed punter.
And considered that India has a federal structural - each state will have to also pass a separate 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 cynical about this ending up being a truth anytime soon."
Yet with the idea having actually been backed by a main panel for the very first time, a minimum of a dispute has ignited around a subject - which previously was thought about a taboo.