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 runs to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour sofa 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 talk about the match however to keep revising his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman gets ready to face the last over he's changed his mind.

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

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

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

For more than 3 decades he's been sports betting on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting distributes thrive in the country.

'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 place bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these transactions involve so-called "black cash", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any sort of gaming in India, but unlike in the US which has a law prohibiting internet gambling, there is absolutely nothing similar here.

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

"Legally you can escape [with this], as the law is ambiguous for online gaming," states Mumbai- based legal representative HP Ranina.

But regardless of this, it is "offline gambling", done through call which dominate the market.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, stating it would assist 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 emerged.

Two franchises have actually been prohibited for 2 years after some players and team officials were condemned of fixing parts of the match at the request of bookies.

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

Even gamblers feel that legalising sports betting is a relocation in the right instructions.

"I do not mind paying some cash out my revenues, as long as I can gamble openly," says our cricket bettor.

It would likewise open a substantial business chance for certified bookmakers and worldwide online wagering companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by helping make deals included in sports betting more transparent.

"If you work along with sports betting business, you will have a very efficient approach of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes imposed on the bettor and the bookmaker will need to be reasonable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal wagering because (some) people would not want to leave an audit path by going into the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to place big bets will never gamble lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a difficult concept to offer.

"Despite the fact that many individuals are associated with some sort of gambling - it's still a controversial concern for numerous," states our unnamed punter.

And given that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their territory.
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"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the idea having been endorsed by a main panel for the very first time, at least a debate has actually fired up around a subject - which until now was thought about a taboo.
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