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 requiring 17 go to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged male is the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has made more than 10 employ the last thirty minutes - not to go over the match but to keep revising his bet.

Five minutes previously his money was on Australia, however now as the Indian batsman gets ready 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 on his forecast becomes a reality, as India wins the match in a nail-biting finish.

"I have actually made $200 today," he states with a childlike 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 illegal in India.

Other than horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited sports betting syndicates grow in the nation.

'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 sports betting cash is directed towards cricket.
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With no legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything related 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 kind of gambling in India, but unlike in the US which has a law restricting internet gambling, there is nothing similar here.

And offshore sports betting companies are utilizing this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have registered accounts with offshore firms.

"Legally you can get away [with this], as the law is ambiguous for online gaming," states 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, stating it would help secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established 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 wagering scandal came to light.

Two franchises have been prohibited for two years after some gamers and group authorities were condemned of fixing parts of the match at the request of bookmakers.

The panel likewise argues that legalised sports betting will generate tax incomes for the exchequer that could total up to $2bn a year.

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

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

It would likewise open a substantial company opportunity for certified bookmakers and international online wagering business to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals associated with sports betting more transparent.

"If you work together with sports betting business, you will have an extremely effective method of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.
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But many likewise think, that the taxes levied on the bettor and the bookmaker will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

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

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

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 idea to sell.

"Although many individuals are involved in some sort of gambling - it's still a controversial issue for many," says our unnamed punter.
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And given that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having been backed by an official panel for the very first time, a minimum of a dispute has fired up around a subject - which until now was considered a taboo.