Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter
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It is the last over of the cricket match, with India requiring 17 go to win versus Australia.

In his two-bedroom house located in Mumbai, a middle-aged male is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has actually made more than 10 calls in the last thirty minutes - not to discuss the match but to keep modifying his bet.
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Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares to deal with the last over he's changed his mind.
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"I think India is winning, make the change," he informs his bookie on the phone.
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And a few minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

"I have actually 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 permitted in India. Despite that, unlawful wagering distributes thrive in the nation.

'Black cash'

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

Without any legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these deals include 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 restricting internet gaming, there is nothing comparable here.

And overseas sports betting business are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have registered accounts with overseas companies.

"Legally you can escape [with this], as the law is unclear for online sports betting," states Mumbai- based attorney HP Ranina.
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But despite this, it is "offline gambling", done through call which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend 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 emerged.
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Two franchises have been prohibited for two years after some gamers and team authorities were condemned of repairing parts of the match at the wish of bookies.

The panel likewise argues that legalised sports betting will bring in tax profits for the exchequer that could total up to $2bn a year.

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

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

It would also open a big company opportunity for licensed bookies and worldwide online wagering companies to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue many, by helping make transactions associated with sports betting more transparent.

"If you work along with sports betting companies, you will have a really reliable technique of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookie will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

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

He includes that individuals who utilize unaccounted cash to put huge bets will never bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a tough idea to sell.

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

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

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

Yet with the concept having actually been backed by an official panel for the very first time, at least a dispute has actually fired up around a topic - which previously was thought about a taboo.