Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

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

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

He has actually made more than 10 employ the last thirty minutes - not to talk about the match but to keep modifying his bet.
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Five minutes earlier his money was on Australia, today as the Indian batsman gets ready to face the last over he's altered his mind.

"I think India is winning, make the change," 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 made $200 today," he says with a childish glee.
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For more than 3 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.
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Aside from horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering syndicates prosper in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's prohibited 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 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 private run scorer.

The majority of these deals include so-called "black cash", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law restricting internet gambling, there is nothing comparable here.
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And offshore wagering business are using this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with overseas companies.

"Legally you can get away [with this], as the law is ambiguous for online sports betting," says Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gaming", done through call which control the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.
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Two franchises have actually been banned for 2 years after some gamers and group authorities were discovered guilty of repairing parts of the match at the request of bookies.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that could total up to $2bn a year.

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

"I do not mind paying some cash out my earnings, as long as I can bet publicly," says our cricket bettor.
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It would also open a big company chance for licensed bookmakers and international online sports betting companies to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

"If you work along with sports betting companies, you will have an extremely efficient approach of stamping out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes imposed on the bettor and the bookie will need to be reasonable to make it enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal wagering due to the fact that (some) people wouldn't want to leave an audit path by going into the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to put big bets will never ever bet lawfully.

Approval concern

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

"Despite the fact that lots of people are associated with some sort of gaming - it's still a controversial concern for many," says 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 in their area.

"The procedure is so long and difficult that it will take years," states 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 a main panel for the very first time, at least a debate has sparked around a subject - which up until now was thought about a taboo.