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Howzat? The clamour to legalise sports betting wagering in India

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 against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged guy is watching the game, nervously. He’s sitting on the edge of his grey colour couch with his mobile phone glued to his right hand.

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

Five minutes previously his money was on Australia, today as the Indian batsman gets all set to face the last over he’s altered his mind.

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

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

“I have actually made $200 today,” he says with a childish glee.
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For more than 3 years he’s been sports betting on cricket matches. We can’t expose his name as what he’s doing is prohibited in India.

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

‘Black cash’

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

With no legal opportunity, punters place bets using their phones by making calls to . Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And offshore sports betting business are using this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas companies.

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

But despite this, it is “offline sports betting”, done through call 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 idea, saying it would assist secure down on corruption in the nation’s favourite sport.

The Justice RM Lodha Commission was established to recommend 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 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 request of bookies.

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

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

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

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

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

“If you work along with sports betting business, you will have an extremely efficient method of stamping out match fixing,” says George Oborne, who runs a mock wagering site, India Bet.

But many likewise think, that the taxes imposed on the bettor and the bookmaker will have to be sensible to make it attractive enough for them to gamble lawfully.

However, there are constraints.
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“Definitely there will be illegal wagering due to the fact that (some) individuals would not desire to leave an audit trail by going into the white market,” says Mr Oborne.

He includes that people who use unaccounted money to position huge bets will never ever gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a tough idea to offer.

“Even though many individuals are involved in some sort of sports betting - it’s still a controversial 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 gambling in their area.

“The process is so long and challenging that it will take years,” states Mr Ranina.“That’s why, we are cynical about this ending up being a reality anytime soon.”

Yet with the concept having been endorsed by a main panel for the first time, a minimum of a debate has actually ignited around a topic - which previously was considered a taboo.