Howzat? The clamour to legalise sports betting wagering in India

Published

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 versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.
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He has actually made more than 10 contact the last 30 minutes - not to talk about the match but to keep modifying his bet.

Five minutes previously his money was on Australia, today as the Indian batsman gets all set to deal with the last over he's changed his mind.

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

And a couple of minutes later his prediction comes real, as India wins the match in a nail-biting finish.
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"I have actually made $200 today," he states with a childish glee.

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

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, unlawful sports betting distributes grow in the country.
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'Black money'
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According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting market deserves some $150bn a year. And much of that sports betting cash is directed towards cricket.

With no legal opportunity, punters position bets using their phones by making calls to bookmakers. can bank on anything related to the cricket match, from who is winning to the greatest individual 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 sort of sports betting in India, however unlike in the US which has a law prohibiting internet sports betting, there is absolutely nothing similar here.

And overseas sports betting companies are utilizing this loophole to tempt Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore companies.

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

But despite this, it is "offline gaming", done through telephone call which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications in the performance 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 prohibited for 2 years after some players and group authorities were condemned of repairing parts of the match at the wish of bookies.

The panel likewise argues that legalised sports betting will generate tax profits for the exchequer that could 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 money out my earnings, as long as I can bet openly," says our cricket gambler.

It would likewise open a big service opportunity for certified bookmakers and global online wagering business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by assisting make deals associated with sports betting more transparent.

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

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

However, there are restrictions.

"Definitely there will be prohibited sports betting because (some) individuals would not wish to leave an audit path by going into the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to place huge bets will never ever gamble legally.

Approval question

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

"Despite the fact that lots of people are associated with some sort of gaming - it's still a questionable concern for numerous," states our unnamed punter.

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

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

Yet with the idea having been backed by an official panel for the very first time, a minimum of an argument has actually sparked around a topic - which up until now was considered a taboo.