Howzat? The clamour to legalise sports betting 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 against Australia.

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

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

Five minutes previously his cash was on Australia, today as the Indian batsman gets ready to deal with the last over he's changed his mind.

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

And a couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

For more than 3 decades he's been sports betting on cricket matches. We can't expose his name as what he's doing is illegal in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering distributes grow in the country.

'Black cash'

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

Without any legal avenue, 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 highest individual run scorer.

Most of these transactions include so-called "black cash", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law prohibiting web gaming, there is nothing comparable here.

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

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

But despite this, it is "offline gaming", done through telephone call which 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 help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend modifications in the functioning of India's cricket regulative 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 team authorities were condemned of repairing parts of the match at the request of bookmakers.
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The panel likewise argues that legalised sports betting will bring in tax profits for the exchequer that could total up to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the right instructions.
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"I do not mind paying some money out my profits, as long as I can gamble openly," says our cricket bettor.

It would likewise open a huge service opportunity for licensed bookmakers and global online wagering companies to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by assisting make transactions associated with gambling more transparent.

"If you work together with wagering business, you will have an extremely efficient approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.
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But many likewise think, that the taxes imposed on the gambler and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be prohibited wagering since (some) people wouldn't wish to leave an audit path by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted cash to place huge bets will never gamble legally.

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 offer.

"Even however lots of people are associated with some sort of gambling - it's still a controversial concern for many," states our unnamed punter.

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

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

Yet with the concept having actually been backed by an official panel for the very first time, a minimum of a debate has actually fired up around a subject - which previously was considered a taboo.