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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 reporter

It is the last over of the cricket match, with India requiring 17 runs to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged man is watching the 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 actually made more than 10 hire the last thirty minutes - not to talk about the match but to keep revising his bet.

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

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

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

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

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

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

'Black money'

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

With no legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can bet 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 cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any sort of gaming in India, however unlike in the US which has a law restricting web gambling, there is nothing comparable here.

And offshore sports betting business are using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot people have actually signed up accounts with overseas firms.

"Legally you can escape [with this], as the law is ambiguous for online sports betting," says Mumbai- based lawyer HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the performance of India's cricket regulative 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 prohibited for two years after some players and group authorities were discovered guilty of repairing parts of the match at the behest of bookies.

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

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

"I don't mind paying some cash out my earnings, as long as I can bet publicly," states our cricket gambler.

It would likewise open a big business chance for licensed bookmakers and international online sports betting companies to set up operations in India.

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

"If you work alongside sports betting business, you will have an extremely effective method of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are limitations.

"Definitely there will be prohibited wagering due to the fact that (some) people would not want to leave an audit path by getting in the white market," states Mr Oborne.

He includes that people who use unaccounted money to put big bets will never bet lawfully.

Approval question

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

"Despite the fact that lots of individuals are included in some sort of gaming - it's still a controversial concern for many," says our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their area.
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"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the having been endorsed by an official panel for the very first time, at least an argument has fired up around a subject - which previously was thought about a taboo.