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 against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged male is viewing the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his best hand.

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

Five minutes previously his money was on Australia, but now as the Indian batsman gets ready to deal with 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 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.

For more than three decades he's been banking on cricket matches. We can't reveal his name as what he's doing is in India.
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Other than horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting distributes thrive in the nation.

'Black cash'

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

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these deals involve so-called "black money", which is cash not stated to the taxman.

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

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

"Legally you can get away [with this], as the law is unclear for online sports betting," says Mumbai- based legal representative HP Ranina.
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But despite 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 designated by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest 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 2 years after some players and team authorities were discovered guilty of fixing parts of the match at the behest of bookies.

The panel likewise argues that legalised wagering will bring in tax profits 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 do not mind paying some cash out my profits, as long as I can gamble publicly," states our cricket gambler.

It would also open a huge organization chance for licensed bookmakers and worldwide online wagering companies to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals involved in sports betting more transparent.

"If you work together with wagering business, you will have an extremely reliable approach of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals wouldn't desire to leave an audit path by entering the white market," states Mr Oborne.

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

Approval concern

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

"Although lots of people are included in some sort of gambling - it's still a questionable problem for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting gambling in their territory.

"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the idea having been backed by an official panel for the first time, a minimum of a dispute has actually fired up around a topic - which previously was thought about a taboo.
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