Howzat? The clamour to legalise sports betting wagering in India

5 February 2016

By Sameer Hashmi
bet9ja.com
Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 runs to win versus Australia.
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In his two-bedroom house located in central Mumbai, a middle-aged man is watching the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has actually made more than 10 calls in the last 30 minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, now 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 informs his bookmaker on the phone.

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

"I have actually made $200 today," he says with a childlike glee.

For more than three years he's been banking on cricket matches. We can't expose his name as what he's doing is illegal in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting distributes thrive in the nation.

'Black money'

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 cash is directed towards cricket.

Without any legal avenue, 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 specific run scorer.

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

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

And offshore sports betting companies are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas firms.

"Legally you can escape [with this], as the law is uncertain for online gambling," states Mumbai- based legal representative HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up 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 been prohibited for 2 years after some players and group authorities were condemned of repairing 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 wagering is a relocation in the right instructions.

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

It would also open a big service opportunity for licensed bookmakers and worldwide online sports betting business to set up operations in India.

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

"If you work alongside sports betting companies, you will have a really reliable approach of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of also believe, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be unlawful wagering due to the fact that (some) individuals would not want to leave an audit trail by going into the white market," states Mr Oborne.

He adds that people who use unaccounted money to place big bets will never ever bet lawfully.

Approval concern

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

"Despite the fact that lots of people are included in some sort of gambling - it's still a questionable problem for lots of," states our unnamed punter.

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

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a truth anytime quickly."

Yet with the idea having actually been endorsed by a main 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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