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 versus Australia.

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

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

Five minutes earlier his money 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 believe India is winning, make the modification," he tells his bookmaker on the phone.

And a couple of minutes later on his forecast comes to life, as the match in a nail-biting finish.

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

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

Besides horse racing, sports betting wagering of any kind is not permitted in India. Despite that, illegal wagering syndicates flourish in the country.
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'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 sports betting money is directed towards cricket.

Without any legal opportunity, punters put 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 private run scorer.
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The majority of these deals involve so-called "black money", which is money not stated to the taxman.

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

And offshore sports betting companies are utilizing this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas firms.

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

But despite this, it is "offline sports betting", done through telephone call which dominate the market.

Calls for legalisation
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The clamour to legalise wagering in cricket has actually grown after a panel selected 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 established to suggest modifications in the performance 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 two years after some gamers and team authorities were condemned of fixing parts of the match at the request of bookies.

The panel likewise argues that legalised wagering will bring in tax profits for the exchequer that might amount to $2bn a year.

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

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

It would also open a big service opportunity for certified bookies and international online sports betting business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by assisting make deals included in gambling more transparent.

"If you work alongside sports betting companies, you will have a really efficient technique of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful wagering since (some) people wouldn't want to leave an audit path by getting in the white market," states Mr Oborne.

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

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a hard concept to sell.

"Even though lots of people are associated with some sort of gaming - it's still a controversial issue for numerous," says our unnamed punter.

And offered that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their territory.

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a truth anytime quickly."

Yet with the concept having actually been backed by an official panel for the very first time, a minimum of a debate has actually sparked around a subject - which previously was considered a taboo.