Howzat? The clamour to legalise sports betting wagering in India

5 February 2016

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

He has made more than 10 calls in the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes previously his cash was on Australia, however 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 bookie on the phone.

And a few minutes later his prediction comes true, as India wins the match in a nail-biting surface.

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

For more than three years he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.

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

'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 sports betting money is directed towards cricket.

Without any legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

Most of these transactions include so-called "black money", which is money not stated to the taxman.

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

And offshore sports betting business are utilizing this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot people have signed up accounts with offshore companies.

"Legally you can escape [with this], as the law is uncertain for online sports betting," says Mumbai- based legal representative HP Ranina.

But despite this, it is "offline gaming", done through telephone call which dominate the market.

Require 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 secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest modifications in the functioning of India's cricket regulatory body, the Board of for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have been prohibited for two years after some players and team officials were condemned of repairing parts of the match at the wish of bookies.

The panel also argues that legalised wagering will generate tax earnings for the exchequer that could total up to $2bn a year.
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Even bettors feel that legalising sports betting wagering is a relocation in the ideal instructions.

"I do not mind paying some money out my revenues, as long as I can gamble publicly," says our cricket bettor.

It would likewise open a huge service chance for certified bookies and global online wagering business to establish operations in India.

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

"If you work alongside sports betting business, you will have an extremely effective technique of stamping out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise believe, 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 restrictions.

"Definitely there will be prohibited wagering due to the fact that (some) individuals wouldn't want to leave an audit path by going into the white market," says Mr Oborne.

He adds that people who use unaccounted cash to put huge bets will never bet lawfully.

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

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

And considered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their area.
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"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a truth anytime quickly."

Yet with the concept having been endorsed by an official panel for the very first time, at least a dispute has actually ignited around a subject - which previously was thought about a taboo.
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