Howzat? The clamour to legalise sports betting 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 against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his mobile 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 modifying his bet.

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

"I believe India is winning, make the change," he tells his bookie on the phone.

And a couple of minutes later on his forecast comes to life, 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 years he's been banking on cricket matches. We can't reveal his name as what he's doing is illegal in India.

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

'Black money'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest individual run scorer.
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The majority of these transactions involve so-called "black money", which is cash not declared to the taxman.

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

And offshore sports betting companies 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 signed up accounts with offshore firms.

"Legally you can get away [with this], as the law is uncertain for online gaming," states Mumbai- based legal representative HP Ranina.

But despite this, it is "offline gaming", done through phone calls which dominate the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to recommend 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 banned for 2 years after some players and group officials were condemned of fixing parts of the match at the wish of bookies.

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

Even gamblers feel that legalising sports betting is a relocation in the right instructions.

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

It would likewise open a big service chance for certified bookmakers and worldwide online wagering business to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by helping make deals included in sports betting more transparent.

"If you work together with wagering companies, you will have an extremely reliable method of marking out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But many likewise think, that the taxes imposed on the gambler and the bookie will have to be affordable to make it attractive enough for them to bet lawfully.

However, there are constraints.

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

He includes that individuals who use unaccounted cash to place huge bets will never ever gamble lawfully.

Approval question

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

"Even though numerous individuals are included in some sort of gaming - it's still a questionable concern for numerous," states our unnamed punter.

And considered that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their area.
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"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 truth anytime soon."

Yet with the idea having actually been backed by a main panel for the first time, at least an argument has actually fired up around a subject - which up until now was thought about a taboo.
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