Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi
bet9ja.com
Mumbai Business reporter

It is the last over of the cricket match, with India needing 17 go to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has made more than 10 hire the last thirty minutes - not to discuss the match but to keep revising his bet.

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

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

And a few minutes later his prediction comes true, 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 years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.
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Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful sports betting distributes thrive in the nation.

'Black money'
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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 money is directed towards cricket.

Without any legal avenue, punters put bets using their phones by making calls to bookmakers. 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 stated to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law restricting web gaming, there is nothing similar here.
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And offshore wagering business are utilizing this loophole to draw Indians. Even though there are no online based out of India, a lot people have actually registered accounts with overseas companies.

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually 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 preferred sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have been banned for two years after some gamers and group officials were condemned of repairing parts of the match at the request of bookmakers.

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

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

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

It would likewise open a substantial organization chance for licensed bookies and international online wagering business to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by assisting make deals associated with sports betting more transparent.

"If you work alongside wagering companies, you will have a very efficient technique of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookie will have to be sensible to make it appealing enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be illegal sports betting due to the fact that (some) individuals wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to put big bets will never ever bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a difficult idea to sell.
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"Despite the fact that lots of people are associated with some sort of gaming - it's still a controversial problem for lots of," 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 gambling in their area.

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

Yet with the concept having been endorsed by an official panel for the very first time, a minimum of an argument has sparked around a topic - which previously was considered a taboo.