Howzat? The clamour to legalise sports betting in India

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5 February 2016

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By Sameer Hashmi
bit.ly
Mumbai Business reporter

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

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

He has made more than 10 employ the last thirty minutes - not to go over the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, however now as the Indian batsman prepares to deal with the last over he's altered his mind.

"I think India is winning, make the modification," he informs his bookmaker on the phone.
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And a few minutes later on his forecast comes true, 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 decades he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful sports betting distributes flourish in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting market is worth some $150bn a year. And much of that gambling cash 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 individual run scorer.

The majority of these deals involve so-called "black money", which is cash not declared to the taxman.

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

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

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to recommend 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.

Two franchises have been banned for two years after some players and team officials were condemned of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will generate tax incomes for the that could amount to $2bn a year.

Even bettors feel that legalising sports betting is a move in the right direction.

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

It would also open a huge business chance for licensed bookies and worldwide online wagering business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by assisting make deals involved in sports betting more transparent.

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

But numerous likewise think, that the taxes levied on the bettor and the bookie will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are constraints.
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"Definitely there will be unlawful wagering since (some) people wouldn't wish to leave an audit path by getting in the white market," states Mr Oborne.

He adds that people who use unaccounted cash to place big bets will never gamble lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a difficult concept to sell.

"Even though numerous people are associated with some sort of gaming - it's still a controversial concern for numerous," states our unnamed punter.
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And considered that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their area.

"The process is so long and difficult 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 actually been backed by an official panel for the very first time, a minimum of a debate has actually ignited around a topic - which until now was thought about a taboo.