Howzat? The clamour to legalise sports betting in India

5 February 2016
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By Sameer Hashmi

Mumbai Business reporter

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

In his two-bedroom house situated in main Mumbai, a middle-aged guy is seeing the game, nervously. He’s resting on the edge of his grey colour couch with his cellphone glued to his ideal hand.

He has actually made more than 10 contact the last 30 minutes - not to discuss the match but to keep revising his bet.

Five minutes previously his money was on Australia, today as the Indian batsman prepares yourself to deal with the last over he’s changed his mind.

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

And a few minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

"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 reveal his name as what he’s doing is illegal in India.

Besides horse racing, sports betting wagering of any kind is not enabled 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 market is worth some $150bn a year. And much of that sports betting money is directed towards cricket.

Without any legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.

The majority of these transactions include so-called “black money”, which is money not declared to the taxman.

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

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

"Legally you can get away [with this], as the law is ambiguous for online sports betting,” states Mumbai- HP Ranina.

But despite this, it is “offline sports betting", done through call which control the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India’s Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation’s favourite sport.

The Justice RM Lodha Commission was set up to suggest 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 came to light.
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Two franchises have actually been banned for two years after some gamers and team authorities were condemned of fixing parts of the match at the request of bookmakers.

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

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

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

It would likewise open a substantial organization chance for certified bookies and global online sports betting business to establish operations in India.

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

"If you work together with sports betting companies, you will have a really reliable approach of marking out match fixing,” states George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise think, that the taxes levied on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be illegal wagering because (some) individuals wouldn’t wish to leave an audit path by getting in the white market,” says Mr Oborne.
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He adds that individuals who use unaccounted money to put huge bets will never gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard concept to offer.

"Despite the fact that lots of people are associated with some sort of gaming - it’s still a questionable issue for numerous,” states our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their territory.
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"The procedure is so long and tricky that it will take years,” states Mr Ranina.“That’s why, we are negative about this coming true anytime quickly.“

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