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 needing 17 go to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right hand.
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He has made more than 10 employ the last thirty 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 gets all set to deal with the last over he's changed his mind.

"I think India is winning, make the modification," he tells his bookie on the phone.

And a few minutes later 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 three decades he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited wagering syndicates prosper in the country.
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'Black cash'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And overseas wagering companies are using this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas companies.

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

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the country's favourite sport.
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The Justice RM Lodha Commission was established to recommend 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.

Two franchises have been prohibited for two years after some players and team authorities were condemned of fixing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax earnings for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting is a move in the best direction.

"I do not mind paying some money out my revenues, as long as I can bet publicly," says our cricket bettor.

It would also open a big business chance for licensed bookmakers and international online sports betting business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

"If you work alongside wagering business, you will have a very efficient approach of marking out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise think, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be prohibited wagering due to the fact that (some) individuals would not want to leave an audit path by going into the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to position huge bets will never ever bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a hard concept to offer.

"Although lots of people are involved in some sort of gaming - it's still a questionable concern for lots of," says our unnamed punter.

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

"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

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