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 requiring 17 go to win versus Australia.
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In his two-bedroom home situated in main Mumbai, a middle-aged guy is enjoying the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

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

Five minutes previously his cash was on Australia, and now as the Indian batsman gets ready to deal with the last over he's changed his mind.

"I think India is winning, make the modification," he tells his bookmaker on the phone.

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

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

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

Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited sports betting distributes thrive in the nation.

'Black money'

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

With no legal avenue, put bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

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

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

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up 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 sports betting scandal came to light.
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Two franchises have actually been banned for 2 years after some players and group officials were found guilty of repairing parts of the match at the behest of bookies.

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

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

"I don't mind paying some money out my profits, as long as I can gamble publicly," states our cricket gambler.
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It would likewise open a big business opportunity for certified bookmakers and global online sports betting 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 transactions involved in gambling more transparent.

"If you work alongside wagering companies, you will have a very efficient approach of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of also believe, that the taxes imposed on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be prohibited wagering 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 individuals who utilize unaccounted money to place huge bets will never gamble lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a tough idea to sell.

"Although many individuals are included in some sort of gambling - it's still a questionable issue for many," states our unnamed punter.

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

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the concept having actually been backed by an official panel for the very first time, a minimum of a debate has ignited around a subject - which previously was thought about a taboo.