Howzat? The clamour to legalise sports betting wagering in India

5 February 2016

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 house located in main Mumbai, a middle-aged male is seeing the game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has actually made more than 10 calls in the last thirty minutes - not to discuss the match however to keep modifying his bet.
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Five minutes previously his cash was on Australia, today as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

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

And a few minutes later on his forecast comes true, as India wins the match in a nail-biting finish.

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

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

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

'Black cash'

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

With no legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these transactions include so-called “black money”, which is money not declared to the taxman.
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The 1867 Public Gambling Act bars any type of sports betting in India, however unlike in the US which has a law restricting web gambling, there is nothing comparable here.

And overseas wagering business are utilizing this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas companies.
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"Legally you can escape [with this], as the law is ambiguous for online sports betting,” says Mumbai- based legal representative HP Ranina.

But in spite of this, it is “offline sports betting", done through call which control the market.
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Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the country's favourite sport.
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The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.
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Two franchises have actually been banned for two years after some gamers and team authorities were condemned of repairing parts of the match at the wish 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 relocation in the right instructions.

"I do not mind paying some money out my earnings, as long as I can gamble openly,” states our cricket bettor.

It would also open a huge service opportunity for certified bookies and international online wagering companies to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

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

But numerous likewise think, that the taxes imposed on the bettor and the bookmaker will have to be sensible to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting since (some) individuals would not desire to leave an audit trail by getting in the white market,” says Mr Oborne.

He adds that individuals who use unaccounted cash to place huge bets will never ever 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 idea to sell.
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"Despite the fact that lots of people are included in some sort of gambling - it's still a controversial issue for numerous,” states our unnamed punter.

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

"The process 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 endorsed by an official panel for the very first time, at least a dispute has ignited around a subject - which previously was thought about a taboo.