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 needing 17 runs to win against Australia.
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In his two-bedroom house located in central Mumbai, a middle-aged male is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile 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 modifying his bet.

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

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

And a couple of minutes later his prediction comes real, as India wins the match in a nail-biting finish.

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

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

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting distributes grow in the nation.

'Black money'

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 avenue, punters place 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 specific run scorer.

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

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

And overseas sports betting companies are using this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually signed up accounts with overseas companies.

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

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

Calls for legalisation

The to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest 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 emerged.

Two franchises have actually been banned for 2 years after some players and team authorities were condemned of repairing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised sports betting will generate tax incomes for the exchequer that might amount to $2bn a year.
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Even bettors feel that legalising sports betting wagering is a relocation in the right instructions.
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"I do not mind paying some money out my revenues, as long as I can bet openly," says our cricket bettor.

It would also open a substantial organization opportunity for licensed bookies and worldwide online sports betting business to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by assisting make deals associated with gambling more transparent.

"If you work together with sports betting companies, you will have a really reliable method of marking out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But many also think, that the taxes levied on the gambler and the bookie will have to be sensible to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal wagering because (some) individuals would not wish to leave an audit trail by entering the white market," states Mr Oborne.
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He adds that individuals who utilize unaccounted money to position big bets will never gamble lawfully.

Approval question

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

"Although lots of people are involved in some sort of gambling - it's still a controversial issue for lots of," says our unnamed punter.
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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 cynical about this becoming a reality anytime soon."

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