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 requiring 17 go to win against Australia.

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

He has actually made more than 10 employ the last thirty minutes - not to go over the match however to keep modifying his bet.
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Five minutes previously his cash was on Australia, and 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 change," he informs his bookie on the phone.

And a couple of minutes later his prediction comes true, 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 decades he's been banking on cricket matches. We can't expose his name as what he's doing is illegal in India.

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, unlawful sports betting syndicates grow in the nation.

'Black money'

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 money is directed towards cricket.

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

The majority of these deals include so-called "black money", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any type of sports betting in India, however unlike in the US which has a law forbiding web gaming, there is absolutely 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 individuals have actually registered accounts with overseas firms.

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

But in spite of this, it is "offline gambling", done through call which dominate the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation's favourite sport.
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The Justice RM Lodha Commission was set up to suggest modifications 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 came to light.

Two franchises have actually been prohibited for 2 years after some gamers and group officials were condemned of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised sports betting will generate tax revenues for the exchequer that could amount to $2bn a year.

Even gamblers feel that legalising sports betting is a relocation in the best instructions.
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"I do not mind paying some cash out my revenues, as long as I can bet publicly," says our cricket bettor.

It would also open a substantial service opportunity for licensed bookies and global online wagering business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by helping make transactions associated with sports betting more transparent.

"If you work along with sports betting companies, you will have a very effective technique of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of also believe, that the taxes imposed on the gambler and the bookmaker will need to be sensible to make it attractive enough for them to .

However, there are limitations.
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"Definitely there will be illegal sports betting since (some) individuals would not want to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that people who utilize unaccounted cash to place big bets will never ever gamble lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a tough idea to offer.

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

And considered that India has a federal structural - each state will have to also pass a different 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 soon."

Yet with the concept having been backed by an official panel for the very first time, at least a debate has actually ignited around a subject - which till now was thought about a taboo.