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 home located in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his glued to his right-hand man.

He has actually made more than 10 employ the last 30 minutes - not to discuss the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, but now as the Indian batsman gets prepared to deal with the last over he's altered his mind.

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

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

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

For more than 3 years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting distributes prosper in the country.

'Black money'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.
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The majority of these transactions include so-called "black money", which is money not stated to the taxman.

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

And offshore wagering companies are utilizing this loophole to tempt Indians. Although there are no online wagering operators based out of India, a lot individuals have registered accounts with offshore companies.

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

But in spite of this, it is "offline gaming", done through phone calls which dominate the market.

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 idea, saying it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest 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.

Two franchises have been prohibited for two years after some gamers and group authorities were condemned of fixing parts of the match at the request of bookies.

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

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

"I don't mind paying some cash out my earnings, as long as I can gamble publicly," says our cricket bettor.

It would likewise open a huge business opportunity for certified bookies and international online wagering companies to set up operations in India.

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

"If you work together with wagering business, you will have an extremely efficient technique of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many also believe, that the taxes imposed on the bettor and the bookie will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be illegal wagering since (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted money to put big bets will never gamble legally.

Approval concern

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

"Although numerous people are associated with some sort of gaming - it's still a questionable problem for numerous," says our unnamed punter.

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

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime soon."

Yet with the idea having been backed by a main panel for the first time, at least an argument has ignited around a subject - which until now was considered a taboo.
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