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 against Australia.
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In his two-bedroom home located in central Mumbai, a middle-aged guy is watching the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his best hand.
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He has made more than 10 hire the last 30 minutes - not to discuss the match but to keep modifying his bet.

Five minutes earlier his cash was on Australia, but now as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

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

And a couple of minutes later on his prediction comes to life, 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 three years he's been wagering on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

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

'Black money'

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

Without any legal opportunity, 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 individual run scorer.

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

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

And offshore sports betting companies 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 registered accounts with offshore firms.
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"Legally you can escape [with this], as the law is uncertain for online gaming," states Mumbai- based attorney HP Ranina.

But despite this, it is "offline sports betting", done through telephone call which dominate the market.

Require legalisation

The clamour to legalise sports betting 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 nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend changes 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 emerged.

Two franchises have actually been prohibited for 2 years after some players and team officials were found guilty of fixing parts of the match at the request of bookies.

The panel likewise argues that legalised sports betting will bring in tax incomes for the that might amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the right instructions.

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

It would also open a big company chance for licensed bookies and international online wagering business to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by assisting make transactions involved in gambling more transparent.

"If you work together with sports betting business, you will have a really efficient approach of marking out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are restrictions.

"Definitely there will be illegal sports betting because (some) individuals would not wish to leave an audit path by going into the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to put big bets will never gamble lawfully.

Approval concern

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

"Although lots of people are included in some sort of gaming - it's still a controversial issue for many," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their area.
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"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime soon."

Yet with the idea having actually been backed by an official panel for the very first time, a minimum of a debate has fired up around a subject - which previously was thought about a taboo.