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Howzat? The clamour to legalise sports betting in India

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.
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In his two-bedroom house situated in main Mumbai, a middle-aged guy is seeing the game, nervously. He's sitting 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 calls in the last 30 minutes - not to go over the match however to keep revising his bet.

Five minutes previously his cash was on Australia, now as the Indian batsman prepares to face 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 few minutes later on his forecast comes true, as India wins the match in a nail-biting finish.

"I have made $200 today," he states 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 illegal in India.

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

'Black money'

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 sports betting money is directed towards cricket.

With no legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions include so-called "black money", which is money not declared to the taxman.

The 1867 Act bars any type of sports betting in India, however unlike in the US which has a law forbiding web sports betting, there is absolutely nothing comparable here.

And overseas wagering companies are using this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas companies.

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

But despite this, it is "offline gaming", done through telephone call which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the performance 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 discovered guilty of repairing parts of the match at the request of bookies.

The panel also argues that legalised wagering will bring in tax earnings for the exchequer that might amount to $2bn a year.
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Even bettors feel that legalising sports betting wagering is a relocation in the right direction.

"I don't mind paying some money out my earnings, as long as I can gamble openly," says our cricket bettor.

It would likewise open a substantial company opportunity for certified bookies and worldwide online sports betting companies to establish operations in India.

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

"If you work along with sports betting business, you will have a very reliable technique of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But numerous also believe, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it attractive enough for them to gamble lawfully.
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However, there are limitations.

"Definitely there will be unlawful sports betting because (some) individuals wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to position huge bets will never ever bet legally.

Approval concern

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

"Despite the fact that lots of people are included in some sort of gaming - it's still a questionable issue for many," states our unnamed punter.

And given that India has a federal structural - each state will need to also pass a different law to legalise sports betting in their territory.
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"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime soon."

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