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.
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In his two-bedroom home located in main Mumbai, a middle-aged guy is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

He has made more than 10 hire the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, now as the Indian batsman prepares 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 couple of minutes later his forecast 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 three decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting syndicates flourish in the nation.

'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 money is directed towards cricket.

With no legal opportunity, punters position bets using their phones by making calls to . Gamblers can bank on anything related to the cricket match, from who is winning to the greatest individual run scorer.

Most of these deals include so-called "black money", which is money not stated to the taxman.
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The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law prohibiting internet gambling, there is nothing similar here.

And offshore wagering companies are using this loophole to entice Indians. Despite the fact that there are no online wagering 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 unclear for online gambling," says Mumbai- based lawyer HP Ranina.

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

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, saying it would help secure 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 came to light.

Two franchises have been prohibited for two years after some gamers and team officials were condemned of repairing parts of the match at the request of bookies.

The panel likewise argues that legalised wagering will bring in tax profits for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a relocation in the ideal direction.
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"I don't mind paying some money out my profits, as long as I can gamble publicly," says our cricket bettor.
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It would likewise open a huge service opportunity for licensed bookmakers and worldwide 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 deals associated with gambling more transparent.

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

But lots of also believe, that the taxes levied on the gambler and the bookmaker will need to be affordable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be prohibited wagering since (some) individuals wouldn't want to leave an audit trail by going into the white market," states Mr Oborne.

He includes that people who use unaccounted cash to place huge bets will never ever bet lawfully.

Approval concern

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

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

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

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

Yet with the idea having been backed by a main panel for the very first time, a minimum of an argument has sparked around a topic - which up until now was considered a taboo.