Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi

Mumbai Business reporter
bet9ja.com
It is the last over of the cricket match, with India needing 17 go to win against Australia.

In his two-bedroom house situated 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 cellphone glued to his ideal hand.

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

Five minutes previously his cash was on Australia, but now as the Indian batsman prepares to face the last over he’s changed his mind.

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

And a few minutes later on his forecast comes to life, as India wins the match in a nail-biting finish.

“I have actually made $200 today,” he says with a childish glee.

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

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

‘Black cash’

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 sports betting money is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest private run scorer.
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Most of these transactions 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, however unlike in the US which has a law forbiding internet sports betting, there is nothing comparable here.
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And offshore sports betting companies are utilizing this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually signed up accounts with offshore firms.

“Legally you can escape [with this], as the law is uncertain for online gambling,” says Mumbai- based attorney HP Ranina.

But regardless of this, it is “offline gaming”, done through call which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was established 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 have actually been prohibited for 2 years after some gamers and group officials were found guilty of fixing parts of the match at the behest of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the ideal direction.

“I don’t mind paying some money out my profits, as long as I can gamble openly,” states our cricket gambler.

It would likewise open a substantial organization opportunity for licensed bookmakers and global online sports betting companies to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue numerous, by helping make deals included in gambling more transparent.

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

But lots of also think, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it appealing enough for them to bet legally.
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However, there are restrictions.
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“Definitely there will be illegal sports betting because (some) people wouldn’t wish to leave an audit trail by going into the white market,” states Mr Oborne.

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

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 tough idea to sell.

“Even though numerous individuals are included in some sort of gambling - it’s still a questionable concern 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 area.

“The process is so long and tricky that it will take years,” says Mr Ranina.“That’s why, we are cynical about this coming true anytime soon.”

Yet with the idea having been backed by a main panel for the very first time, a minimum of a debate has actually ignited around a topic - which up until now was thought about a taboo.