Howzat? The clamour to legalise sports betting wagering 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 needing 17 go to win against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged man is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his ideal hand.

He has actually made more than 10 hire the last thirty minutes - not to the match but to keep revising his bet.

Five minutes earlier his money was on Australia, now as the Indian batsman prepares to face the last over he's altered his mind.

"I believe India is winning, make the change," he informs his bookmaker on the phone.

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

"I have made $200 today," he says with a childish 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 unlawful in India.

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

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

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

The majority of these transactions involve so-called "black money", which is money not stated to the taxman.
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The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law restricting web sports betting, there is absolutely nothing similar here.

And offshore wagering companies are utilizing this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore firms.

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

But in spite of this, it is "offline gaming", done through call which control the market.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to recommend modifications in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have actually been prohibited for 2 years after some players and group officials were discovered guilty of repairing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting is a relocation in the best direction.

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

It would likewise open a huge company chance for licensed bookmakers and worldwide online wagering business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by assisting make transactions associated with gambling more transparent.
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"If you work along with sports betting business, you will have an extremely effective method of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes levied on the bettor 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 illegal sports betting since (some) people wouldn't want to leave an audit trail by entering the white market," says Mr Oborne.

He adds that people who use unaccounted cash to place big bets will never gamble lawfully.

Approval concern

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

"Even though many individuals are included in some sort of gambling - it's still a questionable issue for lots of," says 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 gambling in their area.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having been endorsed by a main panel for the very first time, at least a debate has actually fired up around a topic - which until now was thought about a taboo.