Howzat? The clamour to legalise sports betting in India

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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 needing 17 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his best hand.

He has made more than 10 hire the last 30 minutes - not to talk about the match however to keep modifying his bet.

Five minutes previously his cash was on Australia, however now as the Indian batsman prepares 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 his prediction comes to life, 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 years he's been sports betting on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates thrive in the nation.

'Black cash'

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

With no legal opportunity, punters place bets utilizing 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 money not declared to the taxman.

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

And overseas sports betting companies are using this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with offshore firms.

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

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

Require legalisation

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 preferred 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 came to light.

Two franchises have actually been prohibited for 2 years after some gamers and group authorities were found guilty of parts of the match at the behest of bookmakers.

The panel likewise 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 wagering is a move in the ideal instructions.

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

It would likewise open a big service opportunity for licensed bookmakers and global online wagering companies to set up operations in India.

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

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

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

However, there are restrictions.
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"Definitely there will be unlawful sports betting since (some) people would not want to leave an audit path by entering the white market," says Mr Oborne.
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He includes that individuals who use unaccounted cash to put big bets will never gamble legally.

Approval concern

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

"Even however many individuals are associated with some sort of sports betting - it's still a questionable issue for many," says our unnamed punter.

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

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