Howzat? The clamour to legalise sports betting wagering in India

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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.
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In his two-bedroom home situated in central Mumbai, a middle-aged man is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has actually made more than 10 employ the last 30 minutes - not to discuss the match however to keep revising his bet.
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Five minutes earlier his money was on Australia, however now as the Indian batsman prepares to deal with the last over he's altered his mind.

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

And a few minutes later his forecast comes to life, as India wins the match in a nail-biting finish.
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"I have made $200 today," he says with a childish glee.

For more than 3 decades he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited sports betting syndicates thrive in the nation.

'Black cash'

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

With no legal opportunity, 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 greatest private run scorer.

Most 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 sports betting in India, however unlike in the US which has a law restricting web gaming, there is absolutely nothing comparable here.

And overseas sports betting business are utilizing this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas companies.
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"Legally you can get away [with this], as the law is ambiguous for online gambling," says Mumbai- based legal representative HP Ranina.

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

Calls for legalisation
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The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to suggest changes 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 came to light.

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

The panel likewise argues that legalised wagering will bring in tax revenues for the exchequer that might total up to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the best direction.

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

It would likewise open a substantial organization chance for licensed bookies and online wagering business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make deals involved in gambling more transparent.

"If you work alongside sports betting companies, you will have a really reliable approach of marking out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of also think, that the taxes imposed on the gambler and the bookmaker will have to be reasonable to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be prohibited sports betting because (some) people wouldn't desire to leave an audit path by going into the white market," states Mr Oborne.

He adds that people who use unaccounted money to place big bets will never ever bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a hard idea to offer.

"Even though many individuals are associated with some sort of sports betting - it's still a controversial problem for numerous," says 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 area.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the concept having been endorsed by an official panel for the very first time, at least a dispute has ignited around a subject - which till now was considered a taboo.