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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 requiring 17 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is watching the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

He has made more than 10 contact the last 30 minutes - not to discuss the match however to keep modifying his bet.

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

"I believe India is winning, make the modification," he tells his bookmaker on the phone.
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And a few minutes later his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have actually 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 prohibited in India.

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

'Black cash'

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 sports betting cash is directed towards cricket.

Without any legal avenue, 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 highest specific run scorer.

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

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

And offshore wagering business are using this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore firms.

"Legally you can get away [with this], as the law is ambiguous for online gambling," states Mumbai- based attorney HP Ranina.

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

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, stating it would assist secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up 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 sports betting scandal came to light.

Two franchises have actually been prohibited for two years after some gamers and group officials were found guilty of repairing parts of the match at the wish of bookies.

The panel likewise argues that legalised sports betting will generate tax revenues for the exchequer that might total up to $2bn a year.

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

"I do not mind paying some cash out my profits, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a big service opportunity for certified bookmakers and international online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.

"If you work along with sports betting companies, you will have an extremely effective technique of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many also believe, that the taxes levied on the gambler and the bookie will have to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.
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"Definitely there will be illegal wagering since (some) people would not desire to leave an audit trail by going into the white market," says Mr Oborne.
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He adds that people who use unaccounted money to place big bets will never bet legally.

Approval concern

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

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable concern for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their area.

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

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