Howzat? The clamour to legalise sports betting 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 runs to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is watching the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, and now as the Indian batsman gets prepared to face the last over he's changed his mind.

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

And a couple of minutes later on his prediction comes to life, 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 decades he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, unlawful sports betting distributes thrive in the country.
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'Black money'

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

Without any legal opportunity, punters place 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 involve so-called “black cash”, which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, but unlike in the US which has a law restricting web gaming, there is nothing comparable here.

And offshore sports betting business are utilizing this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot people have signed up accounts with offshore companies.

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

But regardless of this, it is “offline gambling”, done through phone calls which dominate the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would help clamp down on corruption in the nation's favourite sport.
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The Justice RM Lodha Commission was set up to suggest changes in the performance of India's cricket regulative body, the Board of for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been banned for two years after some players and team officials were condemned of repairing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.

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

It would likewise open a substantial service opportunity for licensed bookies and worldwide online sports betting companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by helping make deals involved in sports betting more transparent.

"If you work together with wagering companies, you will have an extremely effective method of stamping out match repairing,” says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise think, that the taxes imposed on the bettor and the bookie will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful wagering due to the fact that (some) people would not desire to leave an audit trail by going into the white market,” says Mr Oborne.

He adds that individuals who use unaccounted cash to position big bets will never gamble lawfully.

Approval question

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

"Although many individuals are included in some sort of gambling - it's still a questionable concern for many,” says 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 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 coming true anytime soon.“

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