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 go to win against Australia.

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

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

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

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

And a few minutes later his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

For more than three years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering distributes grow 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 sports betting cash is directed towards cricket.

With no legal opportunity, punters place 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.

The majority of these transactions include so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law restricting web sports betting, there is absolutely nothing similar here.

And overseas sports betting companies are utilizing this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore companies.

"Legally you can escape [with this], as the law is unclear for online sports betting," states Mumbai- based attorney HP Ranina.

But in spite of this, it is "offline sports betting", done through call which control the market.

Require 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 assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest 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 came to light.

Two franchises have been prohibited for 2 years after some players and team officials were condemned of fixing parts of the match at the behest of bookies.

The panel likewise argues that legalised sports betting will bring in tax earnings for the exchequer that might amount to $2bn a year.
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Even bettors feel that legalising sports betting is a move in the right instructions.

"I do not mind paying some cash out my earnings, as long as I can gamble openly," states our cricket gambler.
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It would also open a huge organization opportunity for certified bookies and worldwide online wagering business to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by helping make transactions involved in sports betting more transparent.
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"If you work alongside wagering business, you will have a really effective method of marking out match fixing," states George Oborne, who runs a website, India Bet.

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

However, there are limitations.

"Definitely there will be prohibited wagering because (some) people would not wish to leave an audit path by getting in the white market," says Mr Oborne.

He includes that people who use unaccounted money to put big bets will never gamble lawfully.
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Approval question

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

"Despite the fact that lots of individuals are included in some sort of gaming - it's still a questionable concern for many," says our unnamed punter.

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

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this becoming a reality anytime soon."

Yet with the concept having actually been endorsed by an official panel for the very first time, a minimum of an argument has sparked around a topic - which previously was considered a taboo.