Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter
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It is the last over of the cricket match, with India requiring 17 go to win against Australia.

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

He has actually made more than 10 hire the last 30 minutes - not to discuss the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman gets ready to face the last over he's altered his mind.

"I think India is winning, make the change," he informs 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 childlike glee.

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

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited wagering distributes prosper 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 money is directed towards cricket.

With no legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law prohibiting web gambling, there is absolutely nothing similar here.

And companies are using this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have signed up accounts with offshore firms.

"Legally you can escape [with this], as the law is ambiguous for online gambling," says Mumbai- based attorney HP Ranina.
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But in spite of this, it is "offline sports betting", done through telephone call which control the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up 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 2 years after some players and team officials were condemned of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will bring in tax profits for the exchequer that could total up to $2bn a year.
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Even gamblers feel that legalising sports betting wagering is a move in the best instructions.

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

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

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by assisting make deals included in gambling more transparent.

"If you work alongside sports betting business, you will have an extremely reliable method of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also think, that the taxes levied on the bettor and the bookie will need to be affordable to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited sports betting due to the fact that (some) people wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to place huge bets will never bet lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a tough concept to offer.

"Although many individuals are associated with some sort of sports betting - it's still a controversial issue for lots of," says our unnamed punter.

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

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

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