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 needing 17 go to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged male is seeing the game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has actually made more than 10 hire the last thirty minutes - not to talk about the match but to keep his bet.

Five minutes earlier his cash was on Australia, now as the Indian batsman prepares to face 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 couple of minutes later on his prediction comes to life, as India wins the match in a nail-biting surface.

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

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting distributes prosper in the country.

'Black cash'

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 gambling cash is directed towards cricket.

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any sort of gaming in India, but unlike in the US which has a law restricting internet sports betting, there is absolutely nothing comparable here.

And offshore sports betting business are utilizing this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot people have registered accounts with offshore companies.

"Legally you can get away [with this], as the law is uncertain for online gaming," states Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gambling", done through call 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 concept, stating it would assist clamp down on corruption in the nation's preferred 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 wagering scandal came to light.

Two franchises have been banned for two years after some gamers and group authorities were discovered guilty of fixing parts of the match at the request of bookmakers.

The panel also argues that legalised sports betting will bring in tax earnings for the exchequer that could amount to $2bn a year.

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

"I do not mind paying some cash out my profits, as long as I can bet openly," states our cricket gambler.

It would likewise open a substantial service chance for licensed bookies and international online sports betting companies to set up operations in India.

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

"If you work alongside wagering business, you will have an extremely efficient method of stamping out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise think, that the taxes imposed on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) people wouldn't want to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to put huge bets will never bet lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a difficult idea to sell.

"Although lots of individuals are associated with some sort of sports betting - it's still a questionable issue for many," says our unnamed punter.

And given that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their area.

"The process is so long and challenging 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 actually been endorsed by a main panel for the very first time, a minimum of a debate has ignited around a subject - which previously was thought about a taboo.