Howzat? The clamour to legalise sports betting wagering in India

5 February 2016

By Sameer Hashmi

Mumbai Business press reporter

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

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

He has made more than 10 hire the last thirty minutes - not to talk about the match however to keep revising his bet.

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

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

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

"I have made $200 today," he says with a childish glee.
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For more than three years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not allowed in India. Despite that, unlawful wagering syndicates thrive in the nation.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting market is worth some $150bn a year. And much of that sports betting money is towards cricket.
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With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

The 1867 Public Gambling Act bars any sort of sports betting in India, however unlike in the US which has a law prohibiting internet sports betting, there is absolutely nothing comparable here.
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And offshore sports betting business are utilizing this loophole to tempt Indians. Even though there are no online sports betting operators based out of India, a lot people have actually signed up accounts with offshore companies.

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

But in spite of this, it is "offline sports betting", done through phone calls which control the market.

Calls for legalisation
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The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulatory 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 actually been prohibited for 2 years after some gamers and team officials were condemned of repairing parts of the match at the request of bookies.

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

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

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

It would also open a substantial business opportunity for licensed bookies and international online sports betting companies to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by assisting make deals associated with sports betting more transparent.

"If you work along with wagering business, you will have a really efficient technique of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous also believe, that the taxes imposed on the gambler and the bookmaker will have to be reasonable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering due to the fact that (some) people would not wish to leave an audit path by getting in the white market," says Mr Oborne.

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

Approval concern

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 offer.
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"Although lots of people are involved in some sort of gaming - it's still a controversial issue for many," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting gambling in their territory.
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"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this ending up being 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 ignited around a topic - which up until now was thought about a taboo.