Howzat? The clamour to legalise sports betting in India

5 February 2016

By Sameer Hashmi

Mumbai Business press reporter

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

In his two-bedroom house located in central Mumbai, a middle-aged guy is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his ideal 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 previously his cash was on Australia, but now as the Indian batsman prepares to face the last over he's altered his mind.

"I think India is winning, make the change," he tells his bookie on the phone.

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

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering distributes flourish in the country.

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

Without any legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these deals involve so-called "black cash", which is money not declared to the taxman.

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

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

"Legally you can get away [with this], as the law is ambiguous for online gaming," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline sports betting", done through telephone call which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was established to suggest changes 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 2 years after some players and team officials were condemned of repairing parts of the match at the behest of bookies.

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

Even bettors feel that legalising sports betting wagering is a relocation in the best direction.

"I don't mind paying some money out my earnings, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a big service chance for certified bookies and international online wagering business to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.

"If you work together with sports betting business, you will have an extremely reliable approach of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous also think, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be prohibited wagering since (some) people would not want to leave an audit path by entering the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted cash to place big bets will never bet legally.

Approval question

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.

"Despite the fact that numerous people are involved in some sort of sports betting - it's still a controversial problem for numerous," says our unnamed punter.
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And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their territory.

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

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