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 requiring 17 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged guy is watching the game, . He's sitting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

He has made more than 10 hire the last thirty minutes - not to talk about the match but to keep modifying his bet.

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

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

And a few minutes later his prediction comes real, as India wins the match in a nail-biting surface.

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

For more than 3 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'Black money'

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

Without any legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

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

And offshore wagering business are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with offshore firms.
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"Legally you can get away [with this], as the law is ambiguous for online gambling," states Mumbai- based legal representative HP Ranina.

But despite this, it is "offline sports betting", done through telephone call which dominate the marketplace.
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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, stating it would help secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest 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 wagering scandal emerged.

Two franchises have actually been prohibited for two years after some players and group authorities were condemned of repairing parts of the match at the request of bookmakers.
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The panel also argues that legalised sports betting will bring in tax incomes for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a big organization chance for licensed bookmakers and global online sports betting companies to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.

"If you work along with sports betting business, you will have an extremely effective method of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise believe, that the taxes imposed 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 prohibited wagering because (some) people wouldn't wish to leave an audit trail by going into the white market," states Mr Oborne.

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

Approval concern
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For sports betting to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a difficult concept to offer.

"Although lots of individuals are associated with some sort of gambling - it's still a controversial problem for numerous," says our unnamed punter.
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And given that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their territory.

"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

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