Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi
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Mumbai Business press reporter

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

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

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

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

"I believe India is winning, make the change," he informs his bookie 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 childish glee.

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

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, unlawful wagering syndicates thrive in the country.

'Black cash'

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

Without any legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And offshore sports betting companies are using this loophole to draw Indians. Although 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 unclear for online gaming," says Mumbai- based attorney HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 wagering scandal emerged.

Two franchises have been banned for two years after some gamers and group officials were found guilty of repairing parts of the match at the request of bookmakers.

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

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

"I do not mind paying some money out my earnings, as long as I can gamble publicly," says our cricket bettor.

It would likewise open a substantial company opportunity for certified bookies and global online to establish operations in India.

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

"If you work alongside sports betting business, you will have an extremely effective approach of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise think, that the taxes levied on the bettor and the bookmaker will have to be sensible to make it appealing enough for them to gamble lawfully.

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

He includes that people who utilize unaccounted cash to put big bets will never bet lawfully.

Approval concern

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

"Even however numerous people are associated with some sort of sports betting - it's still a controversial concern for numerous," states our unnamed punter.

And offered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting gambling in their territory.

"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the idea having actually been backed by a main panel for the very first time, at least an argument has fired up around a subject - which previously was thought about a taboo.