Howzat? The clamour to legalise sports betting 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 runs to win versus Australia.

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

He has made more than 10 employ the last 30 minutes - not to talk about the match but to keep modifying his bet.

Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares to face the last over he's altered his mind.

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

And a few minutes later his forecast comes true, as India wins the match in a nail-biting finish.

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

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

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, unlawful sports betting distributes flourish 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.

With no legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

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

And overseas wagering companies are using this loophole to lure Indians. Although there are no online sports betting operators based out of India, a lot individuals have signed up accounts with overseas companies.

"Legally you can get away [with this], as the law is ambiguous for online sports betting," says Mumbai- based lawyer HP Ranina.

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

Require legalisation
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The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have been prohibited for 2 years after some gamers and group authorities were discovered guilty of repairing parts of the match at the behest of bookmakers.

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

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

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

It would likewise open a huge service opportunity for licensed bookies and international online sports betting business to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by helping make deals included in sports betting more .

"If you work together with wagering companies, you will have an extremely effective approach of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of also believe, that the taxes levied on the gambler and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be illegal wagering due to the fact that (some) people would not wish to leave an audit path by going into the white market," states Mr Oborne.
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He includes that individuals who utilize unaccounted money to place huge bets will never ever gamble lawfully.

Approval question

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

"Despite the fact that many people are involved in some sort of gambling - it's still a questionable problem for many," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their area.
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"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the idea having actually been backed by an official panel for the very first time, a minimum of a dispute has ignited around a topic - which previously was considered a taboo.