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 versus Australia.

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

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

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

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

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

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

For more than three years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.
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Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting distributes flourish in the country.

'Black money'

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

With no legal avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any sort of gambling in India, but unlike in the US which has a law forbiding internet gaming, there is nothing similar here.

And overseas wagering business are utilizing this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have actually registered accounts with overseas firms.

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

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

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, stating it would help clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been banned for 2 years after some gamers and team officials were condemned of repairing parts of the match at the behest of bookmakers.

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

Even gamblers feel that legalising sports betting is a move in the best direction.

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

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

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by assisting make transactions involved in sports betting more transparent.

"If you work along with sports betting business, you will have a really efficient technique of marking out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.
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But many likewise think, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble legally.

However, there are .

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

He includes that individuals who utilize unaccounted money to place big bets will never ever gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be required to create a new law, and politically this will be a difficult concept to sell.

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a questionable issue 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 different law to legalise sports betting in their territory.
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"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

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