Howzat? The clamour to legalise sports betting 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 requiring 17 go to win against Australia.
In his two-bedroom house situated in main Mumbai, a middle-aged guy is seeing the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his ideal hand.
He has actually made more than 10 calls in the last thirty minutes - not to talk about the match however to keep revising his bet.
Five minutes previously his money was on Australia, now as the Indian batsman gets ready to face the last over he's changed his mind.
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"I think India is winning, make the change," he informs his bookmaker on the phone.
And a couple of minutes later his prediction comes to life, as India wins the match in a nail-biting finish.
"I have actually made $200 today," he states with a childlike glee.
For more than 3 decades he's been wagering on cricket matches. We can't expose his name as what he's doing is prohibited in India.
Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering syndicates flourish in the country.
'Black money'
According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting wagering market deserves some $150bn a year. And much of that sports betting money is directed towards cricket.
Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest specific run scorer.
The majority of these deals include so-called "black money", which is cash not stated to the taxman.
The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law restricting internet gambling, there is nothing similar here.
And offshore sports betting business are using this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas firms.
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"Legally you can escape [with this], as the law is unclear for online gaming," says Mumbai- based lawyer HP Ranina.
But despite this, it is "offline sports betting", done through telephone call which dominate the market.
Require legalisation
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The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the nation's favourite sport.
The Justice RM Lodha Commission was established to recommend 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 wagering scandal came to light.
Two franchises have been prohibited for two years after some gamers and group authorities were found guilty of repairing parts of the match at the behest of bookies.
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The panel also 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 move in the best direction.
"I don't mind paying some cash out my earnings, as long as I can bet publicly," states our cricket gambler.
It would also open a huge organization opportunity for certified bookies and worldwide online wagering business to set up 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 alongside wagering companies, you will have an extremely reliable approach of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.
But lots of likewise think, that the taxes levied on the bettor and the bookmaker will need to be reasonable to make it attractive enough for them to gamble legally.
However, there are limitations.
"Definitely there will be unlawful sports betting because (some) individuals wouldn't want to leave an audit trail by entering the white market," says Mr Oborne.
He adds that people who utilize unaccounted money to place huge bets will never ever gamble legally.
Approval concern
For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a hard idea to offer.
"Even though lots of people are included in some sort of sports betting - it's still a questionable problem for many," states our unnamed punter.
And considered 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 challenging that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime quickly."
Yet with the concept having actually been backed by an official panel for the very first time, at least an argument has actually sparked around a subject - which previously was considered a taboo.
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For Sports Gambling to Be Legalised
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