Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi
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Mumbai Business reporter

It is the last over of the cricket match, with 17 runs to win against Australia.

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

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

Five minutes previously his money was on Australia, now as the Indian batsman gets ready to deal with the last over he's changed his mind.

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

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

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

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

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

'Black money'

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

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

And offshore 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 registered accounts with offshore companies.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up 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.

Two franchises have been prohibited for two years after some players and team officials were condemned of repairing parts of the match at the wish of bookies.

The panel also argues that legalised sports betting will bring in tax incomes for the exchequer that could amount to $2bn a year.

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

"I do not mind paying some cash out my earnings, as long as I can bet publicly," says our cricket gambler.

It would also open a huge organization chance for licensed bookies and international online sports betting companies to set up operations in India.
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And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.

"If you work together with wagering companies, you will have a really efficient technique of marking out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.
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But many likewise think, that the taxes levied on the gambler and the bookie will need to be affordable to make it attractive enough for them to gamble legally.
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However, there are constraints.

"Definitely there will be illegal sports betting because (some) people would not desire to leave an audit path by going into the white market," says Mr Oborne.
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He includes that people who use unaccounted money to position big bets will never ever gamble lawfully.

Approval concern

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

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

And provided that India has a federal structural - each state will have to also pass a separate law to legalise sports betting in their area.
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"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a reality anytime quickly."

Yet with the idea having been backed by an official panel for the very first time, a minimum of a dispute has fired up around a topic - which previously was thought about a taboo.
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