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 needing 17 go to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged male is viewing the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his best hand.

He has made more than 10 hire the last 30 minutes - not to discuss the match however to keep modifying his bet.

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

"I believe India is winning, make the change," he informs his bookmaker on the phone.

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

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

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

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

'Black money'

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 sports betting cash is directed towards cricket.

With no legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

The majority of these transactions involve so-called "black money", which is money not stated to the taxman.

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

And offshore sports betting companies are using this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore firms.
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"Legally you can get away [with this], as the law is unclear for online sports betting," says Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline sports betting", done through phone calls which dominate the market.

Require legalisation

The clamour to legalise sports betting in cricket has actually 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 preferred sport.

The Justice RM Lodha Commission was set up to suggest changes in the performance of India's cricket regulatory 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 actually been prohibited for two years after some players and group authorities were condemned of fixing parts of the match at the request of bookies.

The panel also argues that legalised sports betting will bring in tax earnings for the exchequer that might amount to $2bn a year.

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

"I don't mind paying some cash out my earnings, as long as I can bet openly," states our cricket gambler.

It would likewise open a substantial business opportunity for certified bookies and international online wagering companies to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by assisting make transactions involved in gambling more transparent.

"If you work alongside sports betting companies, you will have a really efficient approach of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also think, that the taxes levied on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to bet lawfully.
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However, there are limitations.
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"Definitely there will be illegal sports betting because (some) individuals would not desire to leave an audit path by getting in the white market," states Mr Oborne.
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He includes that people who use unaccounted money to put huge bets will never bet lawfully.

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 tough idea to sell.

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a controversial issue for numerous," says our unnamed punter.

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

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the idea having been backed by a main panel for the very first time, a minimum of an argument has ignited around a subject - which previously was thought about a taboo.