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 needing 17 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is enjoying 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 employ the last 30 minutes - not to go over the match however to keep revising his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman gets all set 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 forecast comes true, as India wins the match in a nail-biting finish.
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"I have actually made $200 today," he says with a childlike glee.
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For more than three decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.

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

'Black cash'

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

Without any legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law forbiding internet gambling, there is nothing comparable here.

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

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

But in spite of this, it is "offline sports betting", done through phone calls which dominate the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to recommend changes in the performance of regulatory 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 players and group authorities were discovered guilty of fixing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will generate tax profits for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting is a relocation 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 bookmakers and international online wagering companies to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by helping make transactions included in sports betting more transparent.

"If you work together with wagering companies, you will have an extremely efficient method of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes levied on the bettor and the bookie will need to be affordable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be prohibited sports betting because (some) people would not wish to leave an audit path by entering the white market," states Mr Oborne.
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He adds that people who utilize unaccounted money to put big bets will never ever gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a tough concept to sell.

"Although many individuals are associated with some sort of sports betting - it's still a controversial concern for numerous," says our unnamed punter.

And given that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their area.

"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 truth anytime quickly."

Yet with the concept having actually been backed by an official panel for the very first time, a minimum of a debate has sparked around a topic - which up until now was thought about a taboo.