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

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

He has actually made more than 10 calls in the last 30 minutes - not to go over the match however to keep revising his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman gets all set to deal with the last over he's changed his mind.

"I think India is winning, make the modification," he informs his bookie on the phone.

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

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

For more than three decades he's been sports betting 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, illegal wagering syndicates thrive in the nation.

'Black cash'

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 is directed towards cricket.

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions include so-called "black money", which is cash not declared to the taxman.
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The 1867 Public Gambling Act bars any kind of sports betting in India, but unlike in the US which has a law prohibiting web gaming, there is absolutely nothing comparable here.

And overseas wagering business are utilizing this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have registered accounts with overseas companies.

"Legally you can escape [with this], as the law is unclear for online sports betting," states Mumbai- based attorney HP Ranina.

But despite this, it is "offline gaming", done through phone calls which dominate the market.

Require legalisation
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The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up 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 actually been banned for two years after some players and team authorities were discovered guilty of fixing parts of the match at the request of bookies.
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The panel also argues that legalised sports betting will bring in tax profits for the exchequer that might 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 money out my profits, as long as I can bet openly," says our cricket bettor.

It would also open a huge organization chance for certified bookies and international online wagering companies to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.

"If you work alongside wagering business, you will have a very reliable approach of marking out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookmaker will have to be sensible to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be unlawful sports betting due to the fact that (some) individuals wouldn't wish to leave an audit trail by entering the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to position huge bets will never ever bet legally.

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 included in some sort of gambling - 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 process is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this becoming a reality anytime quickly."

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