Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

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

In his two-bedroom home situated in central Mumbai, a middle-aged male is watching the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has actually made more than 10 employ the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes earlier his cash was on Australia, now as the Indian batsman gets ready to face 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 couple of minutes later on his prediction comes real, as India wins the match in a nail-biting finish.

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

For more than 3 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not permitted in India. Despite that, illegal wagering syndicates prosper in the nation.

'Black money'

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 is directed towards cricket.

With no legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

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

And offshore wagering companies are utilizing this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with overseas firms.

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

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

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

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

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

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

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

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions involved in gambling more transparent.

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

But lots of also believe, that the taxes levied on the bettor and the bookmaker will need to be reasonable to make it appealing enough for them to gamble legally.
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However, there are restrictions.

"Definitely there will be prohibited wagering due to the fact that (some) individuals wouldn't wish to leave an audit path by going into the white market," states Mr Oborne.

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

Approval concern

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

"Although numerous individuals are associated with some sort of gambling - it's still a controversial concern for many," says our unnamed punter.

And considered that India has a federal structural - each state will have to also pass a separate law to legalise sports betting gambling in their area.

"The process 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 backed by a main panel for the first time, a minimum of a dispute has sparked around a subject - which up until now was considered a taboo.