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 situated in main Mumbai, a middle-aged guy is enjoying the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

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

Five minutes earlier his money was on Australia, now as the Indian batsman prepares yourself to deal with the last over he's altered his mind.
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"I believe India is winning, make the modification," he informs his bookmaker on the phone.
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And a couple of minutes later on his forecast 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 banking on cricket matches. We can't expose his name as what he's doing is illegal in India.

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

'Black money'

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

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

Most of these deals involve so-called "black money", which is cash not declared to the taxman.
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The 1867 Public Gambling Act bars any sort of sports betting in India, however unlike in the US which has a law prohibiting web gaming, there is absolutely nothing similar here.

And overseas wagering business are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

"Legally you can get away [with this], as the law is uncertain for online gaming," states Mumbai- based legal representative HP Ranina.

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed 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 set up to recommend modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have actually been prohibited for two years after some gamers and group officials were condemned of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will generate tax earnings for the exchequer that could amount to $2bn a year.

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

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

It would also open a huge business opportunity for certified bookies and global online wagering business to set up operations in India.
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And it would assist limit match fixing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work along with sports betting business, you will have a really efficient approach of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise believe, that the taxes imposed on the bettor and the bookmaker will have to be sensible to make it attractive enough for them to gamble legally.

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 getting in the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted cash to put big bets will never bet lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a difficult idea to offer.

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

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

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having actually been backed by an official panel for the very first time, at least a dispute has actually sparked around a subject - which previously was thought about a taboo.