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 go to win versus Australia.

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

He has made more than 10 employ the last 30 minutes - not to go over the match but to keep revising his bet.

Five minutes earlier his money was on Australia, and 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 modification," he tells his bookmaker on the phone.

And a few minutes later on his prediction comes real, as India wins the match in a nail-biting finish.

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

For more than three years 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 of any kind is not allowed in India. Despite that, illegal sports betting distributes thrive in the nation.

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

Most of these deals involve so-called "black money", which is money not declared 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 similar here.

And overseas sports betting companies are using this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot people have registered accounts with offshore firms.

"Legally you can get away [with this], as the law is uncertain for online sports betting," says Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gaming", done through telephone call which control the market.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, saying it would assist secure down on corruption in the country'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 emerged.

Two franchises have been prohibited for two years after some gamers and group authorities were condemned of repairing parts of the match at the wish of bookies.

The panel also argues that legalised wagering will bring in tax revenues for the that might amount to $2bn a year.

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

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

It would likewise open a substantial business opportunity for certified bookmakers and global online wagering business to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue lots of, by helping make transactions included in sports betting more transparent.

"If you work along with wagering companies, you will have a really efficient technique of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are restrictions.

"Definitely there will be illegal sports betting since (some) people wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to place big bets will never ever gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a hard idea to sell.
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"Although many individuals are involved in 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 need to likewise pass a different law to legalise sports betting gambling in their area.

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

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