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 located in central Mumbai, a middle-aged guy is seeing the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his ideal hand.

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

Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares to face the last over he's changed his mind.

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

And a couple of minutes later on his prediction comes true, as India wins the match in a nail-biting finish.

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

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

Aside from horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful wagering distributes grow in the nation.
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'Black money'
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According to the Doha-based International Centre for sports betting Security, India's illegal sports betting market deserves some $150bn a year. And much of that sports betting money is directed towards cricket.

With no legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest individual run scorer.

Most of these transactions include so-called "black money", which is cash not stated to the taxman.

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

And offshore wagering business are using this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas firms.

"Legally you can get away [with this], as the law is ambiguous for online sports betting," says Mumbai- HP Ranina.
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But despite this, it is "offline gaming", done through telephone call which dominate the marketplace.

Calls for legalisation

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 assist secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance of India's cricket regulative 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 2 years after some gamers and group authorities were condemned of repairing parts of the match at the wish of bookmakers.

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

Even gamblers feel that legalising sports betting is a move in the best instructions.

"I don't mind paying some money out my profits, as long as I can gamble publicly," says our cricket bettor.

It would likewise open a huge company chance for licensed bookmakers and international online sports betting companies to establish operations in India.

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

"If you work alongside sports betting business, you will have a very effective method of marking out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.

But numerous likewise think, that the taxes levied on the bettor and the bookie will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

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

He includes that people who utilize unaccounted money to place huge bets will never ever gamble 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 difficult idea to offer.

"Although lots of people are associated with some sort of sports betting - it's still a controversial problem for lots of," 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.
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"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

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