Howzat? The clamour to legalise sports betting wagering 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 needing 17 go to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged man is viewing the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right hand.

He has actually made more than 10 employ the last thirty minutes - not to talk about the match however to keep revising his bet.

Five minutes previously his money was on Australia, now as the Indian batsman prepares to face the last over he's altered his mind.

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

And a couple of minutes later his forecast comes to life, as India wins the match in a nail-biting finish.
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"I have made $200 today," he states with a childish glee.

For more than three decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited wagering distributes thrive 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 gambling cash is directed towards .

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

Most of these deals include 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 web gambling, there is nothing comparable here.

And overseas sports betting business are utilizing this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot people have signed up accounts with offshore firms.

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

But despite this, it is "offline gambling", done through telephone call which dominate the market.

Calls for legalisation
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The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have actually been banned for two years after some gamers and group authorities were condemned of repairing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting is a relocation in the ideal direction.

"I do not mind paying some money out my revenues, as long as I can gamble publicly," states our cricket gambler.

It would also open a huge company chance for licensed bookies and international online sports betting business to establish operations in India.

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

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

But lots of also think, that the taxes levied on the bettor and the bookmaker will have to be affordable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be prohibited wagering since (some) individuals wouldn't want to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted money to position big bets will never gamble lawfully.
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Approval concern

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

"Although lots of people are involved in some sort of sports betting - it's still a controversial problem for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting in their area.
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"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a reality anytime quickly."

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