Howzat? The clamour to legalise sports betting in India
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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 home located in main Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has made more than 10 contact the last thirty minutes - not to go over the match but to keep revising his bet.

Five minutes previously his money was on Australia, and now as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

"I believe India is winning, make the change," he tells his bookmaker on the phone.

And a few minutes later on his forecast 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 three years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.
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Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering syndicates prosper in the nation.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting wagering market deserves some $150bn a year. And much of that gambling money is directed towards cricket.

Without any legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest private run scorer.

The majority of these deals include so-called "black cash", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law prohibiting internet gambling, there is absolutely nothing comparable here.

And offshore wagering business are utilizing this loophole to draw Indians. Although 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 uncertain for online sports betting," states Mumbai- based attorney HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was established to suggest changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been banned for 2 years after some and team authorities were condemned of fixing parts of the match at the wish of bookies.

The panel also argues that legalised wagering will generate tax profits for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the ideal instructions.

"I don't mind paying some cash out my profits, as long as I can gamble openly," says our cricket bettor.

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

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by helping make deals associated with gambling more transparent.

"If you work along with sports betting companies, you will have a very reliable technique of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But numerous also believe, that the taxes levied on the gambler and the bookie will have to be reasonable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

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

He includes that individuals who utilize unaccounted cash to position huge bets will never ever bet lawfully.

Approval concern
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For sports betting to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a hard concept to offer.

"Despite the fact that many people are associated with some sort of gambling - it's still a controversial concern for lots of," says our unnamed punter.

And given that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their territory.

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

Yet with the concept having been backed by an official panel for the very first time, at least an argument has ignited around a topic - which up until now was considered a taboo.