Howzat? The clamour to legalise sports betting in India

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

He has made more than 10 calls in the last 30 minutes - not to talk about the match however to keep revising his bet.

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

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

And a few minutes later his forecast comes to life, 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 years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Other than horse racing, sports betting wagering of any kind is not enabled in India. Despite that, unlawful sports betting syndicates flourish in the nation.

'Black money'

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

Without any legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And offshore wagering companies are using this loophole to lure Indians. Although there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore companies.
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"Legally you can escape [with this], as the law is ambiguous for online sports betting," says Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gambling", done through phone calls which control the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulatory 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 prohibited for 2 years after some gamers and group authorities were condemned of repairing parts of the match at the request of bookies.

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

Even bettors feel that legalising sports betting is a move in the ideal instructions.
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"I do not mind paying some cash out my earnings, as long as I can gamble openly," states our cricket gambler.

It would also open a substantial business opportunity for certified bookmakers and international online wagering companies to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by assisting make transactions involved in gambling more transparent.

"If you work along with sports betting business, you will have a really efficient method of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes levied on the bettor and the bookie will have to be sensible to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting since (some) people would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted money to position huge bets will never ever bet legally.

Approval concern

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

"Despite the fact that lots of people are involved in some sort of gambling - it's still a questionable concern for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their territory.
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"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a truth anytime soon."

Yet with the idea having actually been endorsed by a main panel for the very first time, at least an argument has ignited around a subject - which previously was thought about a taboo.