Howzat? The clamour to legalise sports betting 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 go to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has actually made more than 10 employ the last 30 minutes - not to discuss the match however to keep modifying his bet.
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Five minutes previously his money was on Australia, however now as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

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

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

"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.

Besides horse racing, sports betting of any kind is not permitted in India. Despite that, illegal sports betting distributes grow in the country.

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

With no legal opportunity, punters put 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 private run scorer.

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

The 1867 Public Gambling Act bars any kind of sports betting in India, but unlike in the US which has a internet gambling, there is nothing comparable here.

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

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

But in spite of this, it is "offline gambling", done through telephone call which dominate the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would help secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend modifications in the performance 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 been banned for two years after some gamers and group officials were condemned of fixing parts of the match at the request of bookmakers.

The panel likewise argues that legalised sports betting will generate tax revenues for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a huge organization opportunity for licensed bookies and worldwide online wagering companies to set up operations in India.

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

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

But lots of also believe, that the taxes imposed on the gambler and the bookie will need to be sensible to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be illegal sports betting due to the fact that (some) people would not wish to leave an audit path by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to position big bets will never ever bet legally.

Approval concern

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

"Although lots of people are included in some sort of gaming - it's still a questionable issue for lots of," states 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.

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

Yet with the concept having actually been backed by a main panel for the very first time, a minimum of a debate has actually fired up around a subject - which till now was considered a taboo.