Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter
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It is the last over of the cricket match, with India requiring 17 go to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged guy is seeing the video 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 made more than 10 employ 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 yourself to face the last over he's changed his mind.
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"I believe India is winning, make the change," he informs his bookie on the phone.

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

"I have actually made $200 today," he states with a childish glee.
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For more than 3 years he's been wagering on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not permitted in India. Despite that, prohibited sports betting syndicates grow in the country.
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'Black money'

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

With no legal avenue, punters position bets utilizing their phones by making calls to bookmakers. 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 cash", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law forbiding web gaming, there is absolutely nothing comparable here.

And offshore wagering business are using this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore firms.
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"Legally you can get away [with this], as the law is ambiguous for online gambling," states Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gaming", done through telephone call which control the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would assist clamp 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 wagering scandal emerged.

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

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

Even bettors feel that legalising sports betting is a relocation in the ideal instructions.

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

It would likewise open a substantial company opportunity for certified bookies and global online wagering companies to set up operations in India.

And it would assist 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 business, you will have a very effective approach of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous likewise think, that the taxes levied on the bettor and the bookie will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

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

He adds that individuals who utilize unaccounted cash to place big bets will never bet legally.
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Approval question

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

"Despite the fact that many individuals are involved in some sort of sports betting - it's still a questionable issue for lots of," says our unnamed punter.
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And provided that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their territory.

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

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