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 requiring 17 runs to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man 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 man.
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He has actually made more than 10 contact the last thirty minutes - not to talk about the match but to keep modifying his bet.

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

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

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

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

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

Besides horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting syndicates flourish in the nation.

'Black money'
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According to the Doha-based International Centre for sports betting Security, India's prohibited 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 position 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 greatest individual run scorer.

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

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

And offshore sports betting business are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore companies.

"Legally you can escape [with this], as the law is uncertain for online gambling," states Mumbai- based lawyer HP Ranina.

But in spite of this, it is "offline sports betting", done through telephone call which control the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would help secure down on in the country's preferred sport.

The Justice RM Lodha Commission was set up 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 wagering scandal emerged.

Two franchises have been banned for 2 years after some gamers and team officials were discovered guilty of fixing parts of the match at the request of bookmakers.

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

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

"I don't mind paying some cash out my earnings, as long as I can bet openly," states our cricket gambler.

It would likewise open a substantial organization chance for certified bookies and international online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by assisting make transactions associated with sports betting more transparent.

"If you work along with wagering business, you will have a really reliable method of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes imposed on the gambler and the bookmaker will need to be affordable to make it attractive enough for them to bet lawfully.

However, there are limitations.
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"Definitely there will be prohibited wagering due to the fact that (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 ever gamble legally.
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Approval question

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

"Even however many individuals are involved in some sort of sports betting - it's still a questionable issue for lots of," says our unnamed punter.

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

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

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