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 needing 17 go to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is watching the game, nervously. He's sitting on the edge of his couch with his mobile phone glued to his right-hand man.

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

Five minutes previously his money was on Australia, today as the Indian batsman prepares to face the last over he's altered his mind.
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"I think India is winning, make the modification," he tells his bookie on the phone.

And a few minutes later his forecast becomes a reality, as India wins the match in a nail-biting surface.

"I have made $200 today," he says 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 unlawful in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful sports betting distributes prosper 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.
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Without any legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And offshore sports betting companies are using this loophole to tempt Indians. Even though there are no online sports betting 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 ambiguous for online gambling," states Mumbai- based legal representative HP Ranina.

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

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to recommend changes in the functioning of India's cricket regulative 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 request of bookmakers.

The panel also argues that legalised wagering will bring in tax revenues for the exchequer that could amount to $2bn a year.

Even bettors feel that legalising sports betting is a move in the ideal instructions.
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"I don't mind paying some cash out my earnings, as long as I can bet publicly," states our cricket bettor.

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

And it would help limit match fixing in cricket and other sports betting, argue numerous, by helping make transactions involved in sports betting more transparent.

"If you work alongside sports betting business, you will have an extremely reliable method of marking out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.
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But lots of also think, that the taxes levied on the bettor and the bookmaker will have to be affordable to make it attractive enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be illegal sports betting due to the fact that (some) people would not want to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted cash to place big bets will never bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a hard idea to sell.

"Although lots of people are included in some sort of sports betting - it's still a controversial concern for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting gambling in their area.

"The procedure is so long and difficult 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 an official panel for the very first time, a minimum of an argument has fired up around a topic - which previously was thought about a taboo.
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