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 located in central Mumbai, a middle-aged male is viewing the game, nervously. He's sitting on the edge of his grey colour couch 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 revising his bet.

Five minutes earlier his cash was on Australia, now as the Indian batsman gets all set to deal with the last over he's altered his mind.

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

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

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

For more than 3 years he's been sports betting 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 in India. Despite that, illegal wagering syndicates thrive in the country.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting wagering market is worth some $150bn a year. And much of that sports betting money is directed towards cricket.
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Without any legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is to the greatest private run scorer.
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The majority of these transactions involve so-called "black money", which is money not stated 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 nothing similar here.

And offshore sports betting companies are using this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore firms.
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"Legally you can escape [with this], as the law is uncertain for online sports betting," says Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gambling", done through call which dominate the marketplace.

Require legalisation
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The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to recommend changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have been banned for 2 years after some gamers and group officials were found guilty of fixing parts of the match at the request of bookmakers.

The panel also argues that legalised wagering will generate tax incomes for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.
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"I don't mind paying some money out my earnings, as long as I can bet openly," says our cricket gambler.

It would also open a substantial service opportunity for certified bookies and worldwide online wagering business to establish 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 along with wagering business, you will have a very effective technique of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But many likewise believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

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

He includes that individuals who utilize unaccounted money to put big bets will never bet lawfully.

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

"Although lots of people are associated with some sort of gaming - it's still a controversial issue for numerous," states our unnamed punter.

And given 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 challenging that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a reality anytime quickly."

Yet with the concept having been endorsed by a main panel for the very first time, at least a debate has actually ignited around a topic - which until now was considered a taboo.