Howzat? The clamour to legalise sports betting wagering in India

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5 February 2016

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By Sameer Hashmi
bit.ly
Mumbai Business press reporter

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

In his two-bedroom home located in central Mumbai, a middle-aged male is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his best hand.

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

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

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

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

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

For more than 3 years he's been wagering on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Other than horse racing, sports betting wagering of any kind is not enabled in India. Despite that, unlawful wagering syndicates thrive in the country.

'Black cash'

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

Without any legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these deals include so-called "black money", 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 prohibiting internet sports betting, there is absolutely nothing comparable here.
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And offshore wagering business 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 offshore companies.

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

But despite this, it is "offline gambling", done through phone calls which dominate the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected 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 established 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 came to light.

Two franchises have been prohibited for 2 years after some players and group authorities were condemned of fixing parts of the match at the request of bookmakers.

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

Even gamblers feel that legalising sports betting is a move in the best direction.

"I do not mind paying some cash out my profits, as long as I can bet openly," states our cricket bettor.

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

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

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

But lots of also believe, that the taxes imposed on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be prohibited wagering because (some) individuals would not want to leave an audit path by getting in the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to position big bets will never ever gamble lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a hard concept to offer.

"Although lots of people are included in some sort of sports betting - it's still a questionable issue for numerous," 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 gambling in their territory.

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

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of a dispute has actually ignited around a subject - which previously was thought about a taboo.