Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016
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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 go to win versus Australia.
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In his two-bedroom home situated in central Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone 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, now as the Indian batsman gets prepared to deal with 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 comes to life, as India wins the match in a nail-biting surface.

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

For more than 3 years he's been wagering on cricket matches. We can't expose 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, illegal wagering syndicates prosper in the nation.

'Black money'

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

Without any legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these transactions involve so-called "black money", which is cash not declared to the taxman.
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The 1867 Public Gambling Act bars any sort of gambling in India, but unlike in the US which has a law forbiding internet gambling, there is nothing comparable here.

And overseas sports betting business are using this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have registered accounts with offshore firms.
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"Legally you can get away [with this], as the law is unclear for online gambling," says Mumbai- based attorney HP Ranina.

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance 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 team officials were condemned of fixing parts of the match at the wish of bookies.
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The panel also argues that legalised sports betting will generate tax incomes for the exchequer that might amount to $2bn a year.
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Even gamblers feel that legalising sports betting is a relocation in the best direction.

"I do not mind paying some cash out my profits, as long as I can bet publicly," states our cricket bettor.

It would also open a huge organization opportunity for certified bookies and international 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 helping make transactions involved in gambling more transparent.

"If you work together with wagering companies, you will have a very effective approach of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But lots of likewise think, that the taxes levied on the bettor and the will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be prohibited sports betting since (some) individuals wouldn't desire to leave an audit path by going into the white market," states Mr Oborne.

He includes that people who utilize unaccounted money to position huge bets will never gamble legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a hard concept to sell.

"Even though many individuals are included in some sort of gaming - it's still a controversial problem for many," states 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 process is so long and challenging 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 been backed by an official panel for the first time, at least a debate has actually ignited around a subject - which previously was considered a taboo.
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