Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi
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Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 runs to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right hand.

He has made more than 10 employ the last 30 minutes - not to discuss the match but to keep revising his bet.
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Five minutes earlier his cash was on Australia, now as the Indian batsman gets all set to deal with the last over he's altered his mind.

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

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

"I have made $200 today," he states 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.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting syndicates thrive in the country.

'Black money'

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

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

The majority of these deals include so-called "black money", which is money 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 gambling, there is absolutely nothing comparable here.

And overseas sports betting companies are using this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually signed up accounts with offshore firms.

"Legally you can escape [with this], as the law is ambiguous for online sports betting," says Mumbai- based attorney HP Ranina.

But despite this, it is "offline gambling", done through call which control the marketplace.

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 clamp down on corruption in the country's favourite sport.
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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 emerged.

Two franchises have actually been banned for two years after some gamers and team authorities were discovered guilty of fixing parts of the match at the wish of bookmakers.

The panel also argues that will bring in tax profits for the exchequer that might amount to $2bn a year.

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

"I do not mind paying some money out my revenues, as long as I can gamble openly," states our cricket bettor.

It would likewise open a big organization opportunity for licensed bookies and worldwide online sports betting business to set up operations in India.

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

"If you work together with sports betting companies, you will have an extremely effective technique of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.
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But lots of also think, that the taxes imposed on the bettor and the bookie will need to be affordable to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be unlawful sports betting since (some) individuals would not want to leave an audit trail by going into the white market," says Mr Oborne.

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

Approval question

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

"Despite the fact that many people are associated with some sort of gaming - it's still a controversial issue for numerous," states our unnamed punter.

And offered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting in their territory.

"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 truth anytime quickly."

Yet with the concept having been endorsed by an official panel for the first time, at least an argument has actually ignited around a topic - which previously was considered a taboo.