Howzat? The clamour to legalise sports betting 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 versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged male is enjoying the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

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

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

And a few minutes later his prediction comes to life, as India wins the match in a nail-biting surface.

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

For more than 3 years he's been wagering on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal wagering syndicates grow in the nation.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's unlawful sports betting market is worth some $150bn a year. And much of that gambling cash is directed towards cricket.
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Without any legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

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

And offshore sports betting business are utilizing this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore companies.

"Legally you can escape [with this], as the law is uncertain for online gaming," says Mumbai- based attorney HP Ranina.

But in spite of this, it is "offline gambling", done through phone calls which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established 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 wagering scandal emerged.

Two franchises have been banned for 2 years after some players and team officials were condemned of repairing parts of the match at the behest 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 bettors feel that legalising sports betting is a relocation in the right instructions.

"I do not mind paying some money out my earnings, as long as I can gamble openly," states our cricket gambler.

It would likewise open a huge service chance for and international online wagering business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by helping make transactions associated with sports betting more transparent.

"If you work alongside sports betting business, you will have a really reliable approach of stamping out match repairing," states George Oborne, who runs a mock wagering site, India Bet.
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But many also believe, that the taxes levied on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal wagering because (some) people would not wish to leave an audit trail by going into the white market," says Mr Oborne.

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

Approval question
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For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a tough concept to offer.

"Despite the fact that lots of individuals are included in some sort of gambling - it's still a questionable concern for lots of," states our unnamed punter.

And provided that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their territory.
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"The procedure is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

Yet with the idea having actually been endorsed by an official panel for the very first time, at least an argument has actually sparked around a topic - which previously was considered a taboo.
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