Illegal betting and smuggling networks hit by West Asia war

Hyderabad: Along with gas and crude, the West Asia war is also causing trouble for a different kind of business setup, not recognised by the legal system. The betting and smuggling syndicates, too, have been severely impacted by the ongoing war, which does not seem to be ending anytime soon.

Where did the bookies go?

Those aware of the development in the circle said that more than 100 bookies who were managing servers in Dubai to illegally conduct online betting left the ‘city of gold’ soon after the conclusion of the T20 cricket world cup match on March 8.

Since there was a flight disruption, the bookies used other possible options using land routes connected to Oman, besides some cities in the United Arab Emirates, including Sharjah.

Dubai not safe for bookies at the moment

Sources said that while some bookies have shifted to Hong Kong and Singapore, where servers for online betting are already set up, others have chosen South Africa and Kenya to remain much safer.

“The syndicate members felt it was unsafe to run servers from Dubai. which is also under constant attack by Iran,” a bookie said, requesting not to be named.

He added that the syndicate members will soon open the betting rates for the upcoming Indian Premier League (IPL) season starting from March 28.

Gold smuggling hit by geopolitical conflict

Besides the betting mafia, another syndicate that is impacted by the war is associated with gold smuggling, for which Dubai was the major hub. Gold in Dubai costs much less than the price at which it is sold in India. According to market experts, a kg of gold in India costs around Rs 11 lakh more than its price in Dubai. The price in India includes the Goods and Services Tax (GST).

With the disruption in flights and sea routes, the smuggling syndicates have intensified their activities using Hong Kong, China and Myanmar routes. In the last few years, the Myanmar route has been one of the important transit points for smuggling gold into India.

The syndicates are now smuggling gold from Hong Kong to China, from where it is smuggled into India using the Myanmar border by road. Myanmar shares land borders with both China and India. Gold is also smuggled directly from China to India via Myanmar.

Gold price likely to increase

Kumar Jain, national spokesperson for the India Bullion and Jewellers Association, said that gold prices are going to increase because of the war, which is going to continue.

“There is a shortage of official gold supply in India,” said Jain. He added that about 200 to 250 tons of gold are smuggled into India every year.

Speaking to News Meter senior lawyer Dr Sujay Kantawala who handles Customs and the Directorate of Revenue Intelligence (DRI) cases, said that in Hong Kong, there is no import duty, hence the gold price there is around Rs 6 lakh per kg less than it is in India. That is the margin. This is without the GST levied in India.

“The longer the war is prolonged, the margin will keep increasing because the price in India is not falling, whereas in Dubai it is going down due to desperate sales to survive,” Kantawala said.