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 go to win versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged man is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his best hand.

He has made more than 10 hire the last thirty minutes - not to talk about the match however to keep modifying his bet.
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Five minutes previously his cash was on Australia, now 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 informs his bookmaker on the phone.

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

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

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

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

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting market deserves some $150bn a year. And much of that gambling cash is directed towards cricket.
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With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these transactions include so-called "black money", which is cash not declared to the taxman.
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The 1867 Public Gambling Act bars any sort of gaming in India, but unlike in the US which has a law prohibiting web gambling, there is nothing comparable here.

And overseas sports betting companies are using this loophole to entice Indians. Although there are no online sports betting operators based out of India, a lot people have registered accounts with offshore firms.
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"Legally you can get away [with this], as the law is unclear for online gambling," states Mumbai- based lawyer HP Ranina.

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

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

The panel likewise argues that legalised sports betting will generate tax earnings for the exchequer that might amount to $2bn a year.

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

"I do not mind paying some money out my revenues, as long as I can bet publicly," states our cricket gambler.

It would likewise open a big service opportunity for licensed bookmakers and international online wagering business to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work together with wagering companies, you will have a very effective approach of stamping out match repairing," states George Oborne, who runs a website, India Bet.

But lots of likewise believe, that the taxes levied on the bettor and the bookie will have to be reasonable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be unlawful wagering because (some) individuals would not want to leave an audit path by getting in the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to put huge bets will never bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a difficult idea to offer.
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"Although many individuals are involved in some sort of sports betting - it's still a questionable issue for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will have to also 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 quickly."

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