Howzat? The clamour to legalise sports betting 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 needing 17 runs to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged male is viewing the game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right hand.

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

Five minutes previously his cash was on Australia, but now as the Indian batsman prepares yourself to face the last over he's changed his mind.

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

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

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

For more than 3 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 wagering of any kind is not in India. Despite that, unlawful sports betting distributes grow in the country.
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'Black money'

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

Without any legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law restricting internet gaming, there is nothing comparable here.
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And overseas sports betting business are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

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

But regardless of 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 actually grown after a panel designated by India's Supreme Court proposed the idea, saying it would help clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest modifications 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 been banned for 2 years after some gamers and group authorities were discovered guilty of fixing parts of the match at the wish of bookies.

The panel likewise argues that legalised wagering will bring in tax profits for the exchequer that might total up to $2bn a year.

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

"I do not mind paying some cash out my revenues, as long as I can bet publicly," states our cricket gambler.

It would also open a huge business chance for licensed bookmakers and worldwide online wagering companies to establish operations in India.

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

"If you work together with sports betting business, you will have an extremely efficient technique of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But many also believe, that the taxes imposed on the gambler and the bookie will have to be sensible to make it attractive enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting because (some) people wouldn't wish to leave an audit trail by entering the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to place big bets will never gamble lawfully.

Approval question

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

"Despite the fact that lots of people are included in some sort of sports betting - it's still a questionable issue for numerous," 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 in their area.
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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 truth anytime quickly."

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