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

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

In his two-bedroom house located in main Mumbai, a middle-aged man is enjoying the video game, nervously. He's resting on the edge of his couch with his smart phone glued to his best hand.

He has made more than 10 hire the last 30 minutes - not to discuss the match but to keep modifying his bet.

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

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

And a few minutes later on his prediction comes real, 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 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, prohibited sports betting syndicates thrive in the nation.

'Black cash'

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.

With no legal opportunity, 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 private run scorer.

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

The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law prohibiting web sports betting, there is absolutely nothing similar here.

And overseas sports betting companies are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have registered accounts with overseas companies.
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"Legally you can get away [with this], as the law is ambiguous for online gambling," says Mumbai- based attorney HP Ranina.

But despite this, it is "offline gambling", done through call 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 concept, saying it would assist secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established 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 sports betting scandal emerged.

Two franchises have actually been prohibited for 2 years after some gamers and team authorities were condemned of fixing parts of the match at the behest of bookies.

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

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

"I don't mind paying some cash out my earnings, as long as I can gamble publicly," states our cricket bettor.

It would also open a big service opportunity for licensed bookmakers and international online wagering companies to establish operations in India.

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

"If you work along with sports betting business, you will have a very efficient approach of stamping out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are constraints.

"Definitely there will be illegal sports betting since (some) individuals wouldn't wish to leave an audit path by going into the white market," says Mr Oborne.

He includes that people who utilize unaccounted cash to put huge bets will never ever gamble lawfully.

Approval concern
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For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a hard concept to sell.

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable concern for many," says our unnamed punter.
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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 process is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the idea having been backed by an official panel for the very first time, at least an argument has actually ignited around a topic - which previously was thought about a taboo.