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 requiring 17 runs to win against Australia.

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

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

Five minutes earlier his cash was on Australia, but now as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

"I think India is winning, make the modification," he tells his bookie on the phone.

And a couple of minutes later on his prediction comes to life, as India wins the match in a nail-biting surface.
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"I have actually made $200 today," he says with a childlike glee.

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

Besides horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering distributes flourish in the country.

'Black cash'

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

With no legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And overseas sports betting business are using this to draw Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore companies.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend changes 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 request of bookies.

The panel also argues that legalised wagering will generate tax earnings for the exchequer that might amount to $2bn a year.

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

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

It would also open a huge service opportunity for certified bookies and worldwide online sports betting companies to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by helping make deals associated with sports betting more transparent.
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"If you work alongside wagering companies, you will have a very efficient approach of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookmaker will need to be sensible to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be illegal sports betting since (some) people would not wish to leave an audit trail by going into the white market," says Mr Oborne.

He adds that individuals who utilize 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 new law, and politically this will be a tough concept to sell.

"Despite the fact that lots of people are associated with some sort of gambling - it's still a controversial problem for many," says our unnamed punter.

And given that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.
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"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the idea having actually been endorsed by a main panel for the very first time, at least a dispute has sparked around a topic - which up until now was considered a taboo.
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