Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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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 house situated in main Mumbai, a middle-aged man is seeing the video game, nervously. He’s resting on the edge of his grey colour couch with his to his best hand.

He has actually made more than 10 hire the last thirty minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his cash was on Australia, today as the Indian batsman prepares yourself to deal with the last over he’s altered his mind.

“I believe India is winning, make the change,” he informs his bookie on the phone.

And a few minutes later his forecast comes to life, as India wins the match in a nail-biting finish.
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“I have made $200 today,” he states with a childlike 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.
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Other than horse racing, sports betting of any kind is not allowed in India. Despite that, illegal sports betting distributes prosper in the nation.

‘Black cash’

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

Without any legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual run scorer.
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Most of these transactions involve so-called “black cash”, which is cash not declared to the taxman.

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

And overseas wagering companies are utilizing this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with offshore companies.

“Legally you can get away [with this], as the law is unclear for online gambling,” says Mumbai- based lawyer HP Ranina.
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But in spite of this, it is “offline gaming”, done through telephone call 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 idea, saying it would assist clamp down on corruption in the nation’s favourite sport.
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The Justice RM Lodha Commission was set up to suggest modifications in the functioning of India’s cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

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

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

Even gamblers feel that legalising sports betting is a move in the best direction.
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“I don’t mind paying some money out my profits, as long as I can bet openly,” states our cricket gambler.

It would also open a huge service opportunity for certified bookmakers and global online sports betting business to set up operations in India.

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

“If you work along with wagering companies, you will have a very effective technique of marking out match repairing,” states George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are constraints.

“Definitely there will be prohibited sports betting since (some) people would not wish to leave an audit path by entering the white market,” states Mr Oborne.

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

Approval concern

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

“Even though many individuals are associated with some sort of gambling - it’s still a controversial concern for lots of,” states our unnamed punter.

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

“The procedure is so long and tricky that it will take years,” says Mr Ranina.“That’s why, we are negative about this ending up being a reality anytime quickly.”

Yet with the idea having been endorsed by an official panel for the very first time, at least a dispute has ignited around a topic - which up until now was considered a taboo.