Howzat? The clamour to legalise sports betting wagering in India

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5 February 2016
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By Sameer Hashmi

Mumbai Business reporter

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

In his two-bedroom home located in main Mumbai, a middle-aged man is enjoying the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his best hand.

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

Five minutes previously his cash was on Australia, and now as the Indian batsman gets all set to deal with the last over he's changed his mind.

"I think India is winning, make the change," he informs his bookmaker on the phone.

And a couple of minutes later his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childlike glee.

For more than three years he's been banking on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful wagering in the nation.

'Black money'

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

Without any 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 highest specific run scorer.

The majority 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, but unlike in the US which has a law forbiding web gambling, there is absolutely nothing comparable here.

And offshore wagering business are using this loophole to draw Indians. Although 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 regardless of this, it is "offline gaming", done through call which dominate the market.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the nation's preferred sport.

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 emerged.

Two franchises have actually been prohibited for 2 years after some gamers and team authorities were condemned of fixing parts of the match at the wish of bookies.

The panel likewise argues that legalised sports betting will generate tax incomes for the exchequer that could amount to $2bn a year.

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

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

It would also open a big service opportunity for licensed bookies and international online wagering business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by helping make transactions involved in gambling more transparent.

"If you work alongside wagering companies, you will have a really reliable method of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But many likewise believe, that the taxes levied on the gambler and the bookmaker will need to be affordable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.
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He includes that people who use unaccounted money to position big bets will never bet legally.

Approval question

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

"Even however many individuals are associated with some sort of gaming - it's still a controversial issue for lots of," says our unnamed punter.

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

"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

Yet with the idea having actually been backed by an official panel for the very first time, a minimum of a dispute has actually ignited around a topic - which previously was considered a taboo.