Howzat? The clamour to legalise sports betting wagering in India
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Published

5 February 2016

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By Sameer Hashmi

Mumbai Business press 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 central Mumbai, a middle-aged man is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his best hand.

He has made more than 10 calls in the last thirty minutes - not to discuss the match however to keep modifying his bet.

Five minutes previously his cash was on Australia, however now as the gets ready to deal with the last over he's changed his mind.

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

And a couple of minutes later on his forecast comes real, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childish glee.

For more than 3 decades he's been sports betting 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 allowed India. Despite that, illegal wagering distributes prosper in the country.

'Black cash'

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.

The majority of these deals involve so-called "black money", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any kind of gambling in India, however unlike in the US which has a law restricting web gambling, there is 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 individuals have signed up accounts with overseas companies.

"Legally you can get away [with this], as the law is ambiguous for online sports betting," states Mumbai- based attorney HP Ranina.

But in spite of this, it is "offline gaming", done through telephone call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the functioning 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 been banned for two years after some players and group authorities were condemned of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised wagering will generate tax revenues for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the right direction.

"I do not mind paying some cash out my earnings, as long as I can gamble publicly," says our cricket gambler.

It would also open a substantial business chance for licensed bookmakers and global online wagering companies to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue many, by assisting make deals included in sports betting more transparent.

"If you work along with wagering business, you will have an extremely efficient approach of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful sports betting because (some) individuals would not wish to leave an audit path by getting in the white market," says Mr Oborne.

He includes that people who utilize unaccounted cash to put huge bets will never ever gamble lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a tough idea to sell.

"Even however numerous people are associated with some sort of sports betting - it's still a questionable issue for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their area.
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"The procedure 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 idea having actually been endorsed by an official panel for the first time, at least a dispute has actually fired up around a subject - which till now was considered a taboo.
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