Howzat? The clamour to legalise sports betting 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 runs to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right hand.

He has actually made more than 10 calls in the last thirty minutes - not to go over the match however to keep revising his bet.

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

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

And a couple of minutes later on his forecast becomes a reality, as India wins the match in a nail-biting finish.
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"I have made $200 today," he says with a childish glee.

For more than 3 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering syndicates prosper in the nation.

'Black money'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law restricting web gambling, there is nothing comparable here.
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And overseas wagering companies are using this loophole to draw Indians. Even though 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 gaming," says Mumbai- based lawyer HP Ranina.
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But despite this, it is "offline gambling", done through phone calls which control the market.

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

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

Two franchises have actually been banned for 2 years after some gamers and team officials were found guilty of fixing parts of the match at the request of bookies.

The panel likewise argues that legalised wagering will generate tax earnings for the exchequer that might total up to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the best instructions.

"I don't mind paying some cash out my revenues, as long as I can bet publicly," states our cricket gambler.

It would likewise open a substantial organization chance for licensed bookies and global online sports betting business to operations in India.

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

"If you work alongside wagering companies, you will have a very effective approach of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of likewise believe, that the taxes imposed on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to bet legally.

However, there are restrictions.

"Definitely there will be unlawful wagering since (some) people would not want to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that people who use unaccounted cash to place huge bets will never ever bet legally.

Approval question

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

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a controversial issue for many," 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 territory.
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"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this becoming a truth anytime soon."

Yet with the concept having been backed by an official panel for the very first time, a minimum of a debate has actually ignited around a subject - which till now was thought about a taboo.