Howzat? The clamour to legalise sports betting 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 against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged guy is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has actually made more than 10 employ the last thirty minutes - not to discuss the match however to keep revising his bet.

Five minutes earlier his cash was on Australia, today 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 tells his bookie on the phone.

And a couple of minutes later his prediction comes to life, as India wins the match in a nail-biting surface.
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"I have actually 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.

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

'Black money'

According to the Doha-based International Centre for sports betting Security, India's prohibited 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 bet on anything related to the cricket match, from who is winning to the greatest individual run scorer.
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Most of these transactions include so-called "black cash", which is cash not declared to the taxman.

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

And offshore wagering companies are utilizing this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot people have registered accounts with overseas firms.

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

But regardless of this, it is "offline gambling", done through phone calls which dominate the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation's preferred sport.
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The Justice RM Lodha Commission was set up to suggest modifications in the functioning of India's cricket body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been banned for two years after some gamers and team officials were found guilty of fixing parts of the match at the request of bookmakers.

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

"I don't mind paying some cash out my earnings, as long as I can bet openly," says our cricket bettor.
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It would also open a huge business chance for certified bookies and global online wagering business to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals associated with sports betting more transparent.

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

But lots of likewise believe, that the taxes levied on the gambler and the bookie will have to be affordable to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited 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 includes that people who use unaccounted cash to place big bets will never ever bet lawfully.

Approval concern

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

"Although many individuals are associated with some sort of gambling - it's still a controversial concern for lots of," says our unnamed punter.

And given that India has a federal structural - each state will have to also pass a different law to legalise sports betting 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 concept having been backed by a main panel for the very first time, at least an argument has actually sparked around a subject - which previously was thought about a taboo.