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 needing 17 go to win against Australia.
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In his two-bedroom home situated in main Mumbai, a middle-aged man is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

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

Five minutes earlier his cash was on Australia, now as the Indian batsman gets prepared to face the last over he's altered his mind.

"I think India is winning, make the modification," he tells his bookie on the phone.

And a few minutes later on his prediction comes real, 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 three years 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 allowed India. Despite that, unlawful wagering syndicates thrive in the country.
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'Black cash'

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

With no legal opportunity, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.
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Most of these deals involve so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law forbiding internet gambling, there is absolutely nothing comparable here.

And overseas sports betting business are using this loophole to lure Indians. Although there are no online sports betting out of India, a lot people have actually registered accounts with overseas firms.

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

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

Calls for 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 country's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications 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.

Two franchises have actually been banned for two years after some players and group authorities were discovered guilty of repairing parts of the match at the request of bookies.

The panel likewise argues that legalised wagering will bring in tax revenues for the exchequer that might total up to $2bn a year.

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

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

It would likewise open a big organization opportunity for licensed bookmakers and international online wagering business to set up operations in India.
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And it would help limit match fixing in cricket and other sports betting, argue numerous, by helping make transactions included in sports betting more transparent.

"If you work alongside wagering business, you will have a very reliable technique of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.
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But numerous also believe, that the taxes levied on the bettor and the bookmaker will have to be sensible to make it attractive enough for them to bet legally.

However, there are restrictions.

"Definitely there will be illegal wagering because (some) individuals wouldn't desire to leave an audit trail by entering the white market," states Mr Oborne.
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He includes that people who utilize unaccounted money to put huge bets will never gamble legally.

Approval concern

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 concept to offer.

"Even though lots of people are associated with some sort of sports betting - it's still a controversial problem for numerous," states our unnamed punter.

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

"The process 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 idea having actually been endorsed by a main panel for the very first time, at least a debate has fired up around a topic - which previously was thought about a taboo.