For Sports Gambling To Be Legalised
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 requiring 17 runs to win against Australia.
In his two-bedroom home located in central Mumbai, a middle-aged man is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his best hand.
He has made more than 10 calls in the last 30 minutes - not to go over the match but to keep modifying his bet.
Five minutes earlier his cash was on Australia, now as the Indian batsman gets all set to deal with the last over he's altered his mind.
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"I think India is winning, make the change," he tells his bookmaker on the phone.
And a few 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 3 years he's been banking on cricket matches. We can't expose his name as what he's doing is illegal in India.
Other than horse racing, sports betting of any kind is not permitted in India. Despite that, illegal sports betting distributes flourish in the nation.
'Black cash'
According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting market is worth some $150bn a year. And much of that gambling money is directed towards cricket.
Without any legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.
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Most of these transactions involve so-called "black money", which is cash not declared 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 web sports betting, there is absolutely nothing similar here.
And overseas wagering companies are utilizing this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas companies.
"Legally you can get away [with this], as the law is unclear for online sports betting," says Mumbai- based lawyer HP Ranina.
But regardless of this, it is "offline gaming", done through phone calls which control the marketplace.
Require legalisation
The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the nation's favourite sport.
The Justice RM Lodha Commission was set up 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 sports betting scandal emerged.
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Two franchises have been banned for two years after some gamers and team authorities were condemned of fixing parts of the match at the wish of bookmakers.
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The panel likewise argues that legalised sports betting will bring in tax profits for the exchequer that could total up to $2bn a year.
Even bettors feel that legalising sports betting is a relocation in the ideal direction.
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"I do not mind paying some cash out my revenues, as long as I can bet openly," states our cricket gambler.
It would likewise open a huge organization chance for licensed bookies and international online sports betting companies to establish operations in India.
And it would help restrict match repairing in cricket and other sports betting, argue numerous, by assisting make transactions involved in sports betting more transparent.
"If you work alongside wagering companies, you will have a very reliable technique of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.
But lots of likewise believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it attractive enough for them to bet lawfully.
However, there are constraints.
"Definitely there will be prohibited sports betting because (some) individuals would not wish to leave an audit path by entering the white market," says Mr Oborne.
He includes that people who utilize unaccounted money to place big bets will never bet lawfully.
Approval question
For sports betting to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a tough concept to sell.
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"Despite the fact that lots of individuals are included in some sort of sports betting - it's still a controversial issue for numerous," states our unnamed punter.
And considered that India has a federal structural - each state will have to also pass a separate law to legalise sports betting gambling in their territory.
"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 reality anytime soon."
Yet with the idea having been endorsed by a for the very first time, a minimum of a dispute has ignited around a subject - which previously was considered a taboo.