Howzat? The clamour to legalise sports betting wagering in India

5 February 2016
bit.ly
By Sameer Hashmi
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Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 runs to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is watching the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his ideal hand.

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

Five minutes previously his money was on Australia, now as the Indian batsman gets all set to face the last over he's changed his mind.

"I believe India is winning, make the change," he informs his bookie on the phone.

And a couple of minutes later on his forecast comes true, 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 three years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

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

'Black cash'

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

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

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

The 1867 Public Gambling Act bars any sort of sports betting in India, however unlike in the US which has a law prohibiting web sports betting, there is absolutely nothing comparable here.
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And overseas wagering business 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 actually registered accounts with overseas companies.

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

But in spite of this, it is "offline gaming", done through phone calls which control 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 clamp down on corruption in the nation'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 League wagering scandal emerged.

Two franchises have been banned for 2 years after some players and group authorities were found guilty of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will generate tax profits for the exchequer that could amount to $2bn a year.
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Even bettors feel that legalising sports betting is a relocation in the ideal instructions.

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

It would also open a substantial company chance for licensed bookies and international online wagering business to establish operations in India.
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And it would help restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals included in sports betting more transparent.

"If you work alongside sports betting companies, you will have an extremely efficient technique of stamping out match fixing," 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 have to be sensible to make it appealing enough for them to bet legally.
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However, there are restrictions.

"Definitely there will be unlawful wagering because (some) individuals would not want to leave an audit trail by entering the white market," says Mr Oborne.

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

Approval question

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

"Even though lots of people are associated with some sort of gaming - it's still a controversial issue for many," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting in their territory.
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"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having been backed by an official panel for the very first time, at least a debate has actually ignited around a subject - which till now was considered a taboo.