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 runs to win versus Australia.

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

He has actually made more than 10 hire the last 30 minutes - not to go over the match however to keep modifying his bet.

Five minutes earlier his cash was on Australia, however now as the Indian batsman prepares to face the last over he's altered his mind.
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"I think India is winning, make the modification," he informs his bookie on the phone.

And a few minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he states with a childlike 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.
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Besides horse racing, sports betting of any kind is not allowed in India. Despite that, illegal 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 market is worth some $150bn a year. And much of that gambling money is directed towards cricket.
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With no legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest specific run scorer.

Most of these deals include so-called "black cash", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law restricting internet gaming, there is absolutely nothing comparable here.

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

"Legally you can escape [with this], as the law is uncertain for online gambling," says Mumbai- based attorney HP Ranina.
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But despite this, it is "offline gambling", done through telephone call which control the market.

Calls for legalisation

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 assist clamp down on corruption in the nation's preferred sport.
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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 team officials were condemned of repairing parts of the match at the request of bookmakers.

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

Even gamblers feel that sports betting wagering is a relocation in the ideal direction.

"I don't mind paying some cash out my profits, as long as I can bet publicly," says our cricket bettor.

It would likewise open a big company opportunity for certified bookies and international online wagering companies to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by assisting make transactions associated with sports betting more transparent.

"If you work together with sports betting business, you will have a very efficient approach of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise think, that the taxes imposed on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to bet legally.

However, there are constraints.

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

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

Approval concern

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

"Despite the fact that many individuals are involved in some sort of sports betting - it's still a questionable issue for many," says our unnamed punter.

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

"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

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