Howzat? The clamour to sports betting in India

Published

5 February 2016

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By Sameer Hashmi
bet9ja.com
Mumbai Business reporter

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

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

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

Five minutes earlier his money was on Australia, now as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I believe India is winning, make the change," he tells his bookmaker on the phone.

And a couple of minutes later on his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he states with a childlike 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 prohibited in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates prosper in the country.

'Black cash'

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

With no legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the greatest private run scorer.
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Most of these transactions involve so-called "black cash", which is money not stated to the taxman.

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

And offshore sports betting business are using this loophole to entice 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," states Mumbai- based attorney HP Ranina.

But regardless of this, it is "offline gambling", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would assist secure down on corruption in the country's favourite sport.
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The Justice RM Lodha Commission was established to suggest modifications in the functioning of India's cricket regulatory 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 been banned for 2 years after some players and team authorities were discovered guilty of fixing parts of the match at the request of bookies.

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

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

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

It would also open a big company chance for certified bookmakers and global online wagering companies to establish operations in India.
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And it would assist restrict match repairing in cricket and other sports betting, argue numerous, by assisting make deals associated with gambling more transparent.

"If you work alongside sports betting business, you will have an extremely efficient technique of marking out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise think, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble legally.

However, there are limitations.

"Definitely there will be illegal wagering because (some) individuals would not wish to leave an audit path by entering the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to put big bets will never ever gamble legally.

Approval question

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

"Even however many individuals are associated with some sort of gaming - it's still a questionable problem for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their territory.

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

Yet with the idea having been endorsed by a main panel for the first time, at least a debate has sparked around a subject - which until now was considered a taboo.