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 runs to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his ideal hand.

He has made more than 10 employ the last 30 minutes - not to discuss the match however to keep modifying his bet.

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

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

And a few minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

For more than 3 decades he's been wagering 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, prohibited wagering syndicates grow in the nation.

'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 sports betting cash is directed towards cricket.

Without any legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, however unlike in the US which has a law restricting internet gaming, there is nothing similar here.

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

"Legally you can get away [with this], as the law is unclear for online sports betting," states Mumbai- based legal representative HP Ranina.
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But in spite of this, it is "offline gambling", done through telephone call which control the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the country's preferred sport.
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The Justice RM Lodha Commission was established to recommend modifications in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 League wagering scandal came to light.

Two franchises have actually been banned for 2 years after some gamers and team authorities were condemned of repairing parts of the match at the request of bookmakers.

The panel also argues that legalised sports betting will generate tax incomes for the exchequer that could amount to $2bn a year.
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Even gamblers feel that legalising sports betting is a move in the right instructions.

"I don't mind paying some money out my earnings, as long as I can bet openly," says our cricket gambler.

It would likewise open a substantial service opportunity for licensed bookies and global online wagering business to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions associated with sports betting more transparent.

"If you work along with sports betting business, you will have a really reliable technique of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be prohibited wagering due to the fact that (some) people wouldn't wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted cash to place huge bets will never ever bet lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a hard idea to sell.

"Although many people are associated with some sort of gaming - it's still a controversial concern for many," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise 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, at least a dispute has sparked around a topic - which previously was thought about a taboo.