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 requiring 17 runs to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged male is watching the video 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 employ the last thirty minutes - not to go over the match however to keep modifying his bet.

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

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

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

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

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

Besides horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited sports betting syndicates flourish in the country.

'Black cash'
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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 cash is directed towards cricket.

With no legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can wager 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 cash not stated to the taxman.

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

And overseas wagering business 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 actually signed up accounts with offshore firms.

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

But regardless of this, it is "offline gambling", done through phone calls which control the market.

Require legalisation
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The clamour to legalise wagering in cricket has grown after a panel selected by Court proposed the idea, stating it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established 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 wagering scandal came to light.

Two franchises have been prohibited for two years after some gamers and group authorities were discovered guilty of repairing parts of the match at the behest of bookmakers.

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

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

"I don't mind paying some money out my profits, as long as I can gamble publicly," says our cricket gambler.

It would also open a big business chance for certified bookies and worldwide online sports betting business to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by helping make deals involved in gambling more transparent.

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

But lots of likewise think, that the taxes levied on the gambler and the bookie will have to be affordable to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be unlawful wagering because (some) people wouldn't desire to leave an audit trail by going into the white market," states Mr Oborne.

He includes that people who utilize unaccounted money to position big bets will never gamble lawfully.

Approval concern

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

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

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

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

Yet with the idea having actually been endorsed by an official panel for the very first time, a minimum of a dispute has actually fired up around a topic - which till now was thought about a taboo.