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 needing 17 runs to win versus Australia.

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

He has made more than 10 contact the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes previously his cash was on Australia, now as the Indian batsman 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 few minutes later his forecast comes real, as India wins the match in a nail-biting surface.

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

For more than 3 decades 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 wagering of any kind is not allowed India. Despite that, unlawful wagering syndicates flourish in the nation.
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'Black money'
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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 sports betting money is directed towards cricket.

With no legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

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

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

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

But regardless of this, it is "offline sports betting", done through phone calls which dominate the market.

Require legalisation

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

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

Two franchises have been banned for 2 years after some players and team officials were discovered guilty of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering 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 ideal instructions.

"I don't mind paying some money out my profits, as long as I can bet openly," says our cricket gambler.

It would also open a substantial organization chance for certified bookies and international online sports betting business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

"If you work alongside sports betting business, you will have a very reliable technique of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise think, that the taxes imposed on the gambler and the bookie will need to be sensible to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be illegal wagering because (some) people wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to place big bets will never ever bet legally.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a difficult idea to sell.
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"Despite the fact that numerous people are included in some sort of gaming - it's still a controversial concern for numerous," says our unnamed punter.

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

"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the idea having actually been backed by a main panel for the very first time, at least a debate has fired up around a topic - which previously was thought about a taboo.