Howzat? The clamour to legalise sports betting 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 located in central Mumbai, a middle-aged male is watching the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has made more than 10 contact the last thirty minutes - not to go over the match but to keep revising his bet.

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

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

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

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

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

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

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is to the highest individual run scorer.

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

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

"Legally you can escape [with this], as the law is uncertain for online sports betting," says Mumbai- based attorney HP Ranina.

But despite this, it is "offline gambling", done through telephone call which control the market.

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 assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to recommend changes in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been prohibited for two years after some players and group authorities were found guilty of fixing parts of the match at the request of bookies.

The panel also argues that legalised wagering will generate tax earnings for the exchequer that might total up to $2bn a year.
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Even gamblers feel that legalising sports betting is a move in the ideal instructions.

"I do not mind paying some cash out my earnings, as long as I can gamble openly," states our cricket gambler.

It would also open a big business opportunity for certified bookies and global online sports betting companies to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make transactions involved in gambling more transparent.

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

But many also believe, that the taxes levied on the bettor and the bookmaker will need to be reasonable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) people would not wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to put huge bets will never ever bet legally.

Approval question

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

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a controversial issue for lots of," says 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 territory.
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"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the idea having been endorsed by a main panel for the very first time, at least a debate has actually sparked around a topic - which until now was thought about a taboo.