Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi
bit.ly
Mumbai Business reporter

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

In his two-bedroom home located in central Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right hand.

He has actually made more than 10 employ the last thirty minutes - not to talk about the match however to keep revising his bet.

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

"I believe India is winning, make the modification," he informs his bookie on the phone.
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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 banking on cricket matches. We can't expose his name as what he's doing is in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting syndicates prosper in the nation.

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

Without any legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

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

And overseas sports betting business are utilizing this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot people have registered accounts with overseas companies.

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

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

Calls for legalisation
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The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, stating it would help secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend modifications 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 group authorities were found guilty of repairing parts of the match at the behest of bookies.

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

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

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

It would likewise open a substantial organization opportunity for licensed bookmakers and global online wagering companies to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue lots of, by helping make deals involved in sports betting more transparent.

"If you work alongside wagering business, you will have a very efficient method of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise believe, that the taxes imposed on the gambler and the bookie will have to be affordable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be prohibited wagering because (some) people would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

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

Approval concern

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

"Even however lots of people are associated with some sort of gambling - it's still a questionable issue for numerous," states our unnamed punter.

And considered that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their area.

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

Yet with the idea having been endorsed by a main panel for the very first time, a minimum of a dispute has sparked around a topic - which previously was considered a taboo.