Howzat? The clamour to legalise sports betting in India

Published

5 February 2016
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By Sameer Hashmi

Mumbai Business reporter

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

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

He has made more than 10 employ the last 30 minutes - not to go over the match but to keep modifying his bet.

Five minutes earlier his cash was on Australia, and now as the Indian batsman gets all set to face the last over he's altered his mind.

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

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

"I have actually made $200 today," he says with a childish glee.

For more than 3 years he's been wagering on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Other than horse racing, sports betting of any kind is not . Despite that, unlawful wagering syndicates prosper in the nation.

'Black cash'

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

With no legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

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

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

And overseas sports betting companies are using this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have registered accounts with overseas firms.

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

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

Require legalisation
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The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the concept, stating it would help clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to recommend changes 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 came to light.

Two franchises have been prohibited for 2 years after some gamers and team authorities were found guilty of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised wagering will bring in tax incomes for the exchequer that might amount to $2bn a year.
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Even bettors feel that legalising sports betting is a move in the ideal instructions.

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

It would likewise open a big organization chance for certified bookmakers and worldwide online wagering business to set up operations in India.

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

"If you work together with sports betting companies, you will have an extremely efficient approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise believe, that the taxes levied on the bettor and the bookmaker will have to be reasonable to make it appealing enough for them to gamble lawfully.
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However, there are limitations.
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"Definitely there will be illegal wagering because (some) individuals would not want to leave an audit trail by going into the white market," says Mr Oborne.

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

Approval question

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

"Although many individuals are associated with some sort of sports betting - it's still a controversial concern for numerous," says our unnamed punter.

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

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

Yet with the idea having actually been endorsed by a main panel for the first time, at least a debate has actually fired up around a topic - which previously was thought about a taboo.