Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016
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By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is watching the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

Five minutes earlier his money was on Australia, however now as the Indian batsman gets all set to face the last over he's altered his mind.
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"I think India is winning, make the change," he tells his bookmaker on the phone.

And a couple of minutes later his forecast becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he states with a childlike glee.

For more than three years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering syndicates flourish in the country.
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'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 sports betting cash is directed towards cricket.

With no legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest individual run scorer.

Most of these deals include so-called "black cash", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a law forbiding web gaming, there is absolutely nothing similar here.

And overseas sports betting business are using this loophole to entice Indians. Although there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with overseas companies.
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"Legally you can escape [with this], as the law is uncertain for online gambling," states Mumbai- based attorney HP Ranina.

But in spite of this, it is "offline gambling", done through call which dominate 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, saying it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest 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 wagering scandal came to light.

Two franchises have been banned for two years after some players and team officials were condemned of fixing parts of the match at the wish of bookies.

The panel also argues that legalised sports betting will generate tax incomes for the exchequer that could amount to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the ideal direction.

"I do not mind paying some money out my earnings, as long as I can gamble openly," states our cricket gambler.

It would likewise open a big organization chance for licensed bookies and worldwide online sports betting companies to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work along with sports betting companies, you will have an extremely reliable method of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise think, that the taxes levied on the gambler and the will have to be sensible to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting because (some) people wouldn't wish to leave an audit trail by going into the white market," says Mr Oborne.
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He includes that individuals who utilize unaccounted money to put big bets will never ever bet lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a tough concept to offer.

"Even however lots of people are associated with some sort of sports betting - it's still a questionable issue for many," states our unnamed punter.

And given that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their territory.

"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a reality anytime soon."

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