Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi
bet9ja.com
Mumbai Business press reporter

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

In his two-bedroom home situated in main Mumbai, a middle-aged man is enjoying the game, . He's sitting on the edge of his grey colour couch with his smart phone glued to his ideal hand.
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He has made more than 10 employ the last 30 minutes - not to talk about the match however to keep revising his bet.
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Five minutes earlier his cash was on Australia, today as the Indian batsman prepares to deal with the last over he's altered his mind.

"I think India is winning, make the change," he informs his bookmaker on the phone.

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

"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 reveal his name as what he's doing is unlawful in India.

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

'Black money'

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 money is directed towards cricket.

Without any legal avenue, punters position bets utilizing 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.

The majority of these transactions involve so-called "black cash", which is cash not declared to the taxman.
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The 1867 Public Gambling Act bars any kind of gaming in India, but unlike in the US which has a law forbiding web gambling, there is nothing similar here.

And offshore sports betting companies are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas companies.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established 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 wagering scandal emerged.

Two franchises have been banned for 2 years after some players and group officials were discovered guilty of repairing parts of the match at the wish of bookies.

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

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

"I don't mind paying some cash out my earnings, as long as I can gamble publicly," states our cricket bettor.
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It would also open a huge organization chance for certified bookmakers and worldwide online sports betting business to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue many, by helping make transactions included in sports betting more transparent.

"If you work together with wagering companies, you will have a very reliable approach of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be unlawful sports betting because (some) people would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He includes that people who utilize unaccounted money to place big bets will never ever gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a difficult concept to offer.

"Although lots of people are associated with some sort of gambling - it's still a controversial problem for numerous," states our unnamed punter.

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

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

Yet with the idea having been endorsed by a main panel for the first time, at least a debate has ignited around a subject - which previously was considered a taboo.