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 runs to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

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

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

"I think India is winning, make the modification," he informs his bookie on the phone.
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And a few 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 says with a childlike glee.

For more than three years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, illegal wagering syndicates flourish in the country.

'Black cash'

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

Without any legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.

Most of these deals involve so-called "black money", which is cash not stated to the taxman.

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

And offshore sports betting business are utilizing this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with offshore companies.

"Legally you can escape [with this], as the law is uncertain for online gambling," says Mumbai- HP Ranina.

But despite this, it is "offline sports betting", done through phone calls which control the market.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been prohibited for 2 years after some players and team authorities were condemned of repairing parts of the match at the request of bookies.
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The panel likewise argues that legalised wagering will generate tax incomes for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the ideal instructions.

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

It would likewise open a substantial company chance for licensed bookmakers and international online wagering companies to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by assisting make deals involved in sports betting more transparent.

"If you work alongside wagering business, you will have a really efficient approach of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also think, that the taxes imposed on the bettor and the bookie will have to be sensible to make it appealing enough for them to bet legally.

However, there are restrictions.

"Definitely there will be illegal wagering since (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted money to place huge bets will never ever bet legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a hard idea to sell.
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"Even however many individuals are included in some sort of sports betting - it's still a controversial concern for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their territory.
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"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the concept having actually been endorsed by a main panel for the very first time, at least an argument has actually sparked around a topic - which up until now was thought about a taboo.