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

It is the last over of the cricket match, with India requiring 17 go to win against Australia.
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In his two-bedroom home situated in main Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right hand.

He has 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, now as the Indian batsman prepares to deal with the last over he's altered his mind.

"I believe India is winning, make the change," he informs his bookmaker on the phone.

And a couple of minutes later 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 prohibited in India.

Other than horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited wagering syndicates flourish in the country.

'Black money'

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

Without any legal opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

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

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

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

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

But despite this, it is "offline gaming", done through telephone call which control the marketplace.

Require legalisation
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The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the idea, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.
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Two franchises have been prohibited for 2 years after some players and team authorities were condemned of fixing parts of the match at the request of bookmakers.

The panel also argues that legalised wagering will generate tax earnings for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the right direction.
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"I do not mind paying some money out my profits, as long as I can bet openly," says our cricket bettor.

It would likewise open a big business chance for certified bookmakers 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 deals involved in sports betting more transparent.

"If you work alongside sports betting business, you will have a really efficient approach of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are restrictions.

"Definitely there will be illegal wagering due to the fact that (some) individuals would not want to leave an audit trail by going into the white market," says Mr Oborne.

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

Approval question

For sports betting to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard idea to sell.
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"Even though lots of people are associated with some sort of gaming - it's still a questionable issue for lots of," says 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 area.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime soon."

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