Howzat? The clamour to legalise sports betting in India

Published

5 February 2016
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By Sameer Hashmi
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Mumbai Business reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged man is watching the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has made more than 10 contact the last 30 minutes - not to discuss the match but to keep revising his bet.

Five minutes previously his money was on Australia, now as the Indian batsman prepares yourself to deal with the last over he's changed his mind.
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"I think India is winning, make the change," he tells his bookie on the phone.

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

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

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

Aside from horse racing, sports betting wagering of any kind is not permitted in India. Despite that, illegal sports betting distributes thrive in the nation.

'Black cash'

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

With no legal opportunity, 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 highest individual run scorer.

Most of these deals involve so-called "black money", which is cash not declared to the taxman.

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

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

"Legally you can escape [with this], as the law is ambiguous for online gaming," says Mumbai- based attorney HP Ranina.
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But in spite of this, it is "offline gambling", done through telephone call which dominate the market.
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Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would assist secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established 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 actually been prohibited for 2 years after some gamers and group authorities were found guilty of fixing parts of the match at the request of bookmakers.

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

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

"I don't mind paying some money out my earnings, as long as I can bet openly," states our cricket bettor.

It would likewise open a substantial service opportunity for licensed bookmakers and international online sports betting companies to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make deals involved in gambling more transparent.

"If you work along with wagering companies, you will have a really effective approach of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also think, that the taxes levied on the gambler and the bookmaker will have to be sensible to make it attractive enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be illegal sports betting due to the fact that (some) individuals wouldn't wish to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that people who use unaccounted cash to position huge bets will never gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a tough concept to offer.
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"Although lots of people are associated with some sort of gaming - it's still a controversial problem for numerous," says our unnamed punter.

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

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this becoming a truth anytime soon."

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of an argument has actually fired up around a topic - which till now was considered a taboo.