Howzat? The clamour to legalise sports betting in India

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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 versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man 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 actually made more than 10 employ the last 30 minutes - not to go over the match however to keep revising his bet.

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

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

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

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

For more than 3 years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.

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

'Black money'

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

Without any legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And offshore sports betting business are utilizing this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot people have signed up accounts with offshore firms.

"Legally you can escape [with this], as the law is ambiguous for online gaming," states Mumbai- based attorney HP Ranina.

But regardless of this, it is "offline sports betting", done through phone calls which control the market.
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Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, it would assist secure down on corruption in the country'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 banned for 2 years after some gamers and group officials 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 profits for the exchequer that might total up to $2bn a year.

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

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

It would also open a huge service opportunity for certified bookmakers and worldwide online wagering companies to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by assisting make deals associated with gambling more transparent.
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"If you work along with wagering companies, you will have an extremely effective approach of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookie will need to be sensible to make it attractive enough for them to gamble lawfully.

However, there are restrictions.
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"Definitely there will be illegal sports betting since (some) individuals would not want to leave an audit path by going into the white market," says Mr Oborne.

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

Approval concern

For sports betting to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a tough concept to sell.

"Even though lots of people are included in some sort of sports betting - it's still a controversial issue for numerous," states our unnamed punter.

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

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

Yet with the idea having actually been endorsed by an official panel for the very first time, at least a dispute has actually fired up around a subject - which up until now was thought about a taboo.