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 needing 17 runs to win against Australia.

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

He has actually made more than 10 employ the last 30 minutes - not to talk about the match however to keep revising his bet.

Five minutes previously his money was on Australia, however now as the Indian batsman prepares to deal with 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 his prediction comes to life, as India wins the match in a nail-biting finish.
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"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 expose his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting distributes flourish in the nation.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting wagering 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 utilizing their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest specific run scorer.

Most of these transactions include so-called "black cash", which is money not declared to the taxman.

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

And overseas wagering business are using this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore firms.

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

But regardless of this, it is "offline sports betting", done through call which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the 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 banned for 2 years after some gamers and team authorities were condemned of fixing parts of the match at the behest of bookmakers.

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

Even gamblers feel that legalising sports betting wagering is a relocation in the right instructions.

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

It would likewise open a substantial company opportunity for licensed bookies and global online sports betting companies to establish operations in India.

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

"If you work alongside sports betting business, you will have a really effective method of marking out match repairing," says 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 bookmaker will need to be reasonable to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be illegal wagering because (some) people wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.
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He adds that people who use unaccounted money to put huge bets will never ever bet lawfully.

Approval concern
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For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard concept to sell.

"Even however lots of people are associated with some sort of gaming - it's still a controversial concern for many," states our unnamed punter.

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

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

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