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 versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged man is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his best hand.

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

Five minutes previously his money was on Australia, and now as the Indian batsman gets all set to deal with the last over he's altered 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 forecast 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 years he's been banking on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, unlawful sports betting distributes flourish in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting wagering market deserves some $150bn a year. And much of that gambling cash is directed towards cricket.

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

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

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

And overseas wagering companies are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with overseas firms.

"Legally you can escape [with this], as the law is uncertain for online gaming," says Mumbai- based legal representative HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was established 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 wagering scandal came to light.

Two franchises have actually been prohibited for two years after some gamers and team officials were condemned of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax revenues for the exchequer that might amount to $2bn a year.
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Even gamblers feel that legalising sports betting wagering is a relocation in the right instructions.

"I don't mind paying some money out my revenues, as long as I can gamble publicly," says our cricket bettor.
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It would also open a substantial organization opportunity for certified bookmakers and global online wagering companies to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue lots of, by helping make deals included in sports betting more transparent.
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"If you work together with wagering companies, you will have a really effective approach of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful wagering since (some) individuals would not want to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to put huge bets will never ever gamble legally.

Approval question

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

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable problem for lots of," states our unnamed punter.

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

"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the concept having actually been backed by an official panel for the very first time, at least a debate has actually ignited around a subject - which up until now was thought about a taboo.