Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter
bit.ly
It is the last over of the cricket match, with India needing 17 runs to win against Australia.

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

He has made more than 10 hire the last thirty minutes - not to discuss the match however to keep revising his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman prepares to deal with the last over he's changed his mind.

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

And a few minutes later on his prediction comes to life, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he states 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 unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not permitted in India. Despite that, prohibited sports betting distributes flourish in the country.

'Black cash'

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 gambling cash is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest specific run scorer.
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Most of these transactions include so-called "black money", which is cash not stated to the taxman.

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

And overseas sports betting companies are utilizing this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

"Legally you can escape [with this], as the law is unclear for online sports betting," states Mumbai- based legal representative HP Ranina.
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But in spite of this, it is "offline gaming", done through call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the functioning 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 been banned for 2 years after some players and group authorities were condemned of fixing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.

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

It would also open a big organization chance for licensed bookmakers and international online wagering business to establish operations in India.

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

"If you work together with wagering business, you will have a really efficient technique of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous also believe, that the taxes imposed on the gambler 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 illegal wagering since (some) individuals wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who use unaccounted cash to put huge bets will never bet lawfully.

Approval question

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

"Even though numerous individuals are associated with some sort of sports betting - it's still a questionable concern for numerous," says our unnamed punter.

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

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

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