Howzat? The clamour to legalise sports betting in India

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5 February 2016

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By Sameer Hashmi

Mumbai Business press 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 central Mumbai, a middle-aged man is seeing the game, nervously. He’s sitting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

Five minutes previously his money was on Australia, and now as the Indian batsman prepares yourself to deal with the last over he’s changed his mind.

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

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

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

For more than 3 decades he’s been sports betting on cricket matches. We can’t reveal his name as what he’s doing is unlawful in India.

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

‘Black cash’

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

With no legal opportunity, punters place 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 individual run scorer.

Most of these deals include so-called “black cash”, which is money not declared to the taxman.

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

And overseas sports betting business are utilizing this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas firms.

“Legally you can get away [with this], as the law is unclear for online sports betting,” states Mumbai- based legal representative HP Ranina.

But despite this, it is “offline sports betting”, done through phone calls which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the performance of India’s cricket regulatory 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 discovered guilty of repairing parts of the match at the wish 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 gamblers feel that legalising sports betting wagering is a move in the right direction.

“I do not mind paying some cash out my revenues, as long as I can gamble openly,” states our cricket gambler.

It would likewise open a big service chance for certified bookmakers and worldwide online wagering companies to set up operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by helping make deals involved in gambling more transparent.

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

But numerous also believe, that the taxes imposed on the gambler and the bookie will need to be sensible to make it appealing enough for them to gamble legally.

However, there are restrictions.

“Definitely there will be prohibited sports betting due to the fact that (some) people wouldn’t desire to leave an audit trail by going into the white market,” states Mr Oborne.

He includes that individuals who utilize unaccounted money to place big bets will never ever bet lawfully.

Approval concern

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

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

And considered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.
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“The procedure is so long and challenging that it will take years,” says Mr Ranina.“That’s why, we are cynical about this coming true anytime quickly.”

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 subject - which up until now was thought about a taboo.
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