Howzat? The clamour to legalise sports betting 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 runs to win against Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged male is seeing the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

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

Five minutes previously his cash was on Australia, however 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 informs his bookie on the phone.

And a few minutes later his prediction comes to life, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childish glee.
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For more than 3 years he's been wagering on cricket matches. We can't reveal his name as what he's doing is prohibited in India.
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Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited sports betting syndicates prosper in the country.

'Black money'

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.

Without any legal avenue, punters put 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 individual run scorer.

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

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law forbiding internet gaming, there is nothing similar here.

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

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the performance 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 actually been banned for 2 years after some players and team authorities were condemned of fixing parts of the match at the behest of bookies.

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

Even gamblers feel that legalising sports betting wagering is a move in the best instructions.

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

It would likewise open a substantial business opportunity for licensed bookmakers and international online wagering business to set up operations in India.
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And it would assist limit match fixing in cricket and other sports betting, argue numerous, by assisting make transactions involved in gambling more transparent.
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"If you work along with sports betting companies, you will have a very effective approach of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of also believe, that the taxes imposed on the gambler and the bookie will need to be sensible to make it attractive enough for them to bet legally.
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However, there are constraints.

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

He includes that individuals who utilize unaccounted money to put big bets will never ever bet lawfully.

Approval concern
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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 associated with some sort of gambling - it's still a questionable issue for numerous," states our unnamed punter.

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

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a reality anytime soon."

Yet with the concept having been backed by an official panel for the very first time, at least a debate has actually ignited around a topic - which previously was considered a taboo.