Howzat? The clamour to legalise sports betting 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 male is seeing the video 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 actually made more than 10 employ the last thirty minutes - not to go over the match but to keep revising his bet.

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

"I think India is winning, make the change," he informs his bookie on the phone.

And a couple of minutes later his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

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

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, illegal wagering syndicates prosper in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering market deserves some $150bn a year. And much of that gambling money is directed towards cricket.
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Without any legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest individual run scorer.

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

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

And overseas wagering business are utilizing this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with offshore companies.

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

But in spite of this, it is "offline gambling", done through telephone call which control the marketplace.

Calls for legalisation

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

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

Two franchises have been prohibited for two years after some players and team officials were found guilty of repairing parts of the match at the wish of bookmakers.

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

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

"I do not mind paying some money out my revenues, as long as I can gamble openly," states our cricket gambler.

It would also open a substantial business for certified bookmakers and international online sports betting business to set up operations in India.
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And it would assist restrict match fixing in cricket and other sports betting, argue many, by assisting make deals included in gambling more transparent.

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

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

However, there are limitations.

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

He adds that people who use unaccounted cash to put big bets will never gamble legally.

Approval question

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

"Despite the fact that many individuals are included in some sort of gambling - it's still a controversial problem for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their territory.

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

Yet with the idea having been backed by an official panel for the first time, a minimum of a debate has sparked around a topic - which up until now was considered a taboo.