Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi
bet9ja.com
Mumbai Business press reporter

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

In his two-bedroom house located in main Mumbai, a middle-aged guy is viewing 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.
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He has actually made more than 10 employ the last 30 minutes - not to talk about the match but to keep modifying his bet.
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Five minutes previously his cash was on Australia, now as the Indian batsman prepares to face the last over he's changed his mind.

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

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

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

For more than three years he's been banking 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 enabled in India. Despite that, unlawful sports betting syndicates 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 sports betting cash is directed towards cricket.

Without any legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

The 1867 Public Gambling Act bars any sort of gaming in India, but unlike in the US which has a law restricting web sports betting, there is nothing comparable here.

And overseas wagering business are using this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

"Legally you can get away [with this], as the law is unclear for online gambling," states Mumbai- based lawyer HP Ranina.

But regardless of this, it is "offline sports betting", done through telephone call which control the marketplace.

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 help clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest 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 came to light.

Two franchises have been banned for two years after some gamers and group authorities were condemned of fixing parts of the match at the request of bookies.

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

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

"I do not mind paying some cash out my profits, as long as I can gamble publicly," says our cricket bettor.
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It would likewise open a huge service opportunity for licensed bookies and international online wagering business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.
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"If you work together with wagering business, you will have an extremely efficient approach of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But lots of also think, that the taxes imposed on the gambler and the bookmaker will have to be reasonable to make it appealing enough for them to bet legally.

However, there are restrictions.

"Definitely there will be illegal wagering since (some) people would not desire to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to position big bets will never bet lawfully.

Approval concern

For to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a hard idea to offer.

"Despite the fact that many individuals are associated with some sort of gambling - it's still a questionable issue for many," says our unnamed punter.
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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 process is so long and tricky 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 very first time, a minimum of a debate has ignited around a subject - which until now was considered a taboo.