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 man is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his ideal hand.
He has actually made more than 10 employ the last thirty minutes - not to go over the match but to keep revising his bet.
Five minutes earlier his cash was on Australia, but now as the Indian batsman gets ready to face the last over he's changed his mind.
"I believe India is winning, make the modification," he informs his bookie on the phone.
And a couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.
"I have actually made $200 today," he states with a childish glee.
For more than 3 decades 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 of any kind is not allowed India. Despite that, unlawful sports betting syndicates prosper in the country.
'Black cash'
According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering market deserves some $150bn a year. And much of that sports betting money 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 specific run scorer.
Most of these deals involve so-called "black cash", which is cash not stated to the taxman.
The 1867 Public Gambling Act bars any kind of sports betting in India, but unlike in the US which has a law forbiding web gambling, there is nothing similar here.
And overseas sports betting business are using this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have signed up accounts with offshore companies.
"Legally you can escape [with this], as the law is ambiguous for online gambling," states Mumbai- based lawyer HP Ranina.
But despite this, it is "offline gambling", done through telephone call which dominate the market.
Require legalisation
The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, stating it would assist secure down on corruption in the country's preferred sport.
The Justice RM Lodha Commission was set up to suggest modifications 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 been prohibited for two years after some players and team authorities were discovered guilty of repairing parts of the match at the request of bookmakers.
The panel also argues that legalised wagering will bring in tax revenues for the exchequer that might total up to $2bn a year.
Even bettors feel that legalising sports betting wagering is a relocation in the ideal instructions.
"I don't mind paying some cash out my revenues, as long as I can gamble publicly," states our cricket bettor.
It would also open a huge business chance for licensed bookies and worldwide online wagering companies to set up operations in India.
And it would assist restrict match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with gambling more transparent.
"If you work alongside wagering business, you will have an extremely efficient method of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.
But many likewise think, that the taxes levied on the gambler and the bookie will need to be sensible to make it attractive enough for them to bet lawfully.
However, there are limitations.
"Definitely there will be prohibited sports betting since (some) individuals would not desire to leave an audit path by entering the white market," states Mr Oborne.
He adds that people who use unaccounted cash to place huge bets will never bet 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 tough idea to sell.
"Although many individuals are associated with some sort of sports betting - it's still a questionable issue for many," says our unnamed punter.
And offered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their territory.
"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime quickly."
Yet with the concept having been backed by a main panel for the very first time, a minimum of a debate has ignited around a topic - which till now was considered a taboo.