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
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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 main Mumbai, a middle-aged man is seeing the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

Five minutes previously his cash was on Australia, today as the Indian batsman gets all set to deal with the last over he's altered his mind.

"I think India is winning, make the modification," he informs his bookie on the phone.

And a few minutes later on his forecast comes to life, as India wins the match in a nail-biting surface.

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

For more than 3 decades he's been wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

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

With no legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these deals involve so-called "black money", which is money not stated to the taxman.

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

And overseas sports betting business are using this loophole to tempt Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

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

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

Calls for legalisation

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

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

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

The panel also argues that legalised sports betting will bring in tax profits for the exchequer that could total up to $2bn a year.

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

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

It would likewise open a huge organization chance for certified 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 lots of, by assisting make deals associated with sports betting more transparent.

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

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

However, there are limitations.

"Definitely there will be prohibited wagering since (some) individuals wouldn't wish to leave an audit trail by entering the white market," states Mr Oborne.

He adds that people who use unaccounted cash to position huge bets will never bet lawfully.

Approval concern

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

"Even however lots of people are associated with some sort of gambling - it's still a controversial problem for lots of," states our unnamed punter.

And given that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their territory.
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"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime soon."

Yet with the idea having actually been endorsed by a main panel for the very first time, at least an argument has sparked around a subject - which until now was thought about a taboo.