Howzat? The clamour to legalise sports betting in India

Published

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 needing 17 go to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged male is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

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

Five minutes previously his cash was on Australia, however now as the Indian batsman prepares 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 couple of minutes later on his prediction comes true, 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 decades he's been banking 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 allowed in India. Despite that, prohibited wagering syndicates prosper in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting market deserves some $150bn a year. And much of that gambling cash is directed towards cricket.
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Without any legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

Most of these transactions include so-called "black cash", which is cash not stated to the taxman.

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

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

"Legally you can escape [with this], as the law is uncertain for online gaming," says Mumbai- based lawyer HP Ranina.

But regardless of this, it is "offline gaming", done through call which control the market.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the idea, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up 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 sports betting scandal came to light.

Two franchises have actually been prohibited for two 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 earnings for the exchequer that could total up to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a relocation in the best instructions.

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

It would also open a huge opportunity for certified bookmakers and international online sports betting companies to establish operations in India.
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And it would help limit match repairing in cricket and other sports betting, argue many, by assisting make deals included in gambling more transparent.
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"If you work together with wagering companies, you will have a very reliable technique of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous also believe, that the taxes imposed on the gambler and the bookie will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering due to the fact that (some) individuals wouldn't desire to leave an audit path by going into the white market," states Mr Oborne.
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He adds that people who utilize unaccounted money to put big bets will never ever gamble legally.

Approval concern
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For sports betting gambling to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a tough concept to sell.
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"Even though lots of people are involved in some sort of gaming - it's still a controversial concern for lots of," states our unnamed punter.

And given that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their area.

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

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