Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter
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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 guy is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right hand.

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

Five minutes previously his cash was on Australia, today as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I think India is winning, make the modification," he his bookie on the phone.

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

"I have made $200 today," he says 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.

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

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

With no legal avenue, punters place 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 transactions involve so-called "black cash", which is cash not stated to the taxman.

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 comparable here.

And overseas wagering business are utilizing this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have registered accounts with offshore firms.

"Legally you can escape [with this], as the law is unclear for online gaming," states Mumbai- based attorney HP Ranina.
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But despite this, it is "offline gambling", done through call which dominate the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, stating it would help secure down on corruption in the country's preferred sport.
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The Justice RM Lodha Commission was established to suggest changes 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 prohibited for two years after some gamers and team officials were condemned of fixing parts of the match at the wish of bookmakers.
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The panel also argues that legalised wagering will generate tax incomes for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some money out my revenues, as long as I can gamble openly," states our cricket bettor.

It would likewise open a substantial company chance for certified bookies and worldwide online wagering business to establish operations in India.

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

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

But lots of also think, that the taxes imposed on the gambler and the bookmaker will have to be sensible to make it attractive enough for them to gamble legally.

However, there are constraints.
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"Definitely there will be illegal wagering since (some) individuals wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who use unaccounted money to put big bets will never ever bet legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a difficult concept to sell.

"Even though lots of people are involved in some sort of gaming - it's still a questionable problem for lots of," says our unnamed punter.

And considered 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 challenging that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

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