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 requiring 17 runs to win against Australia.

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

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

Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares yourself to deal with the last over he's changed his mind.

"I believe India is winning, make the change," he tells his bookie on the phone.

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

"I have actually 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 prohibited in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting syndicates thrive in the country.

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

Most of these transactions involve 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 restricting internet gaming, there is nothing similar here.

And offshore sports betting business are using this loophole to lure Indians. Even though there are no online wagering 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 uncertain for online gaming," says Mumbai- based attorney HP Ranina.

But regardless of this, it is "offline sports betting", done through phone calls which dominate the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the idea, saying it would help clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to suggest modifications in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.
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Two franchises have been banned for two years after some players and group authorities were condemned of repairing parts of the match at the wish of bookies.

The panel also argues that legalised wagering will generate tax incomes for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting is a move in the right instructions.

"I don't mind paying some money out my earnings, as long as I can gamble openly," says our cricket gambler.

It would also open a substantial business opportunity for licensed bookies and international online sports betting business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by assisting make deals included in gambling more transparent.

"If you work along with sports betting business, you will have an extremely reliable approach of marking out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous likewise believe, that the taxes imposed on the gambler and the bookie will need to be affordable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be prohibited sports betting since (some) individuals wouldn't wish to leave an audit trail by entering the white market," says Mr Oborne.

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

Approval question

For sports betting to be legalised, parliamentary approval will be needed to develop a new law, and this will be a hard idea to offer.

"Even though numerous people are associated with some sort of gambling - it's still a questionable concern for many," states our unnamed punter.

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

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

Yet with the concept having actually been endorsed by an official panel for the very first time, at least a dispute has sparked around a topic - which previously was thought about a taboo.
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