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 go to win versus Australia.

In his two-bedroom home situated in main 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 right hand.

He has actually made more than 10 hire the last thirty minutes - not to talk about the match but to keep modifying his bet.

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

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

And a couple of minutes later his prediction comes real, 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 years he's been wagering on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting syndicates grow in the nation.

'Black money'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the highest private run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, however unlike in the US which has a law forbiding web sports betting, there is absolutely nothing comparable here.
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And offshore wagering business are using this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas companies.

"Legally you can escape [with this], as the law is uncertain for online sports betting," says Mumbai- based legal representative HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the functioning 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 banned for 2 years after some players and group officials were discovered guilty of repairing parts of the match at the wish of bookmakers.
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The panel likewise argues that legalised sports betting will bring in tax earnings for the exchequer that could total up to $2bn a year.

Even gamblers feel that legalising sports betting is a relocation in the ideal direction.
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"I don't mind paying some cash out my profits, as long as I can bet openly," says our cricket bettor.

It would likewise open a huge organization opportunity for certified bookies and wagering companies to set up operations in India.

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

"If you work alongside wagering companies, you will have an extremely effective approach of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise think, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it appealing enough for them to gamble legally.

However, there are limitations.

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

He includes that people who utilize unaccounted money to put big bets will never gamble legally.

Approval question

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

"Even though lots of people are associated with some sort of sports betting - it's still a questionable issue for many," 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 territory.

"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having been endorsed by a main panel for the first time, a minimum of a debate has actually ignited around a subject - which previously was thought about a taboo.
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