Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter
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It is the last over of the cricket match, with India requiring 17 go to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged man is watching the game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

Five minutes previously his cash was on Australia, today as the Indian batsman prepares to deal with the last over he's changed his mind.

"I think India is winning, make the modification," 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 surface.

"I have made $200 today," he says with a childlike 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 unlawful in India.

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

'Black cash'

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

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

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

The 1867 Public Gambling Act bars any type of sports betting in India, but unlike in the US which has a law forbiding web sports betting, there is absolutely nothing comparable here.

And offshore sports betting business are utilizing this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas firms.

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

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

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications in the performance of India's cricket regulative 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 two years after some players and group authorities were condemned of fixing parts of the match at the wish of bookies.
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The panel also argues that legalised wagering will bring in tax earnings for the exchequer that might total up to $2bn a year.

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

"I don't mind paying some cash out my profits, as long as I can gamble openly," says our cricket bettor.

It would likewise open a huge company opportunity for licensed bookies and global online wagering companies to establish operations in India.

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

"If you work together with wagering business, you will have a very efficient approach of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But many also believe, that the taxes imposed on the gambler and the bookie will have to be affordable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be prohibited wagering since (some) people would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to position big bets will never gamble lawfully.

question

For sports betting gambling to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a difficult idea to sell.

"Even though lots of people are associated with some sort of sports betting - it's still a questionable concern for many," states our unnamed punter.

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

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

Yet with the idea having been endorsed by a main panel for the very first time, a minimum of an argument has ignited around a subject - which previously was considered a taboo.