Howzat? The clamour to legalise sports betting wagering 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 versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is seeing the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has actually made more than 10 calls in the last thirty minutes - not to discuss the match however to keep modifying his bet.

Five minutes previously his money was on Australia, today as the Indian batsman prepares 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 forecast comes true, 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 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting syndicates thrive in the country.

'Black cash'

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

With no legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And offshore wagering companies are utilizing this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have actually registered accounts with .

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

But regardless of this, it is "offline sports betting", done through telephone call which control the market.
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Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, stating it would assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend changes 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.
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Two franchises have actually been banned for 2 years after some gamers and group authorities were condemned of repairing parts of the match at the behest of bookies.

The panel likewise argues that legalised wagering 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 best instructions.

"I don't mind paying some money out my revenues, as long as I can gamble publicly," says our cricket gambler.

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

And it would assist restrict match repairing in cricket and other sports betting, argue many, by helping make transactions included in sports betting more transparent.

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

But many also think, that the taxes levied on the gambler and the bookie will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering because (some) individuals would not wish to leave an audit path by entering the white market," states Mr Oborne.

He includes that people who use unaccounted cash to position huge bets will never bet lawfully.

Approval question

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

"Although many individuals are associated with some sort of gambling - it's still a controversial concern for many," says our unnamed punter.

And offered that India has a federal structural - each state will have to also pass a separate law to legalise sports betting in their area.
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"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime soon."

Yet with the concept having been backed by an official panel for the very first time, a minimum of a dispute has fired up around a subject - which till now was thought about a taboo.