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 press 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 central Mumbai, a middle-aged man is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has actually made more than 10 employ the last thirty minutes - not to talk about the match but to keep revising his bet.

Five minutes previously his cash 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 change," he informs his bookmaker on the phone.

And a few minutes later on his prediction comes real, as India wins the match in a nail-biting finish.

"I have made $200 today," he states with a childlike glee.
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For more than three decades 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 enabled in India. Despite that, unlawful wagering syndicates prosper 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 gambling money is directed towards cricket.

With no legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And overseas sports betting business are utilizing this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with overseas firms.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend changes 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 2 years after some gamers and team officials were found guilty of repairing parts of the match at the wish of bookies.

The panel also argues that legalised wagering will generate 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 best instructions.

"I do not mind paying some money out my revenues, as long as I can bet publicly," says our cricket gambler.

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

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

"If you work together with sports betting business, you will have an extremely effective technique of marking out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.
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But numerous likewise believe, that the taxes imposed on the bettor and the bookmaker will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting because (some) people wouldn't wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that individuals who use unaccounted cash to place big bets will never gamble legally.

Approval concern
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For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a difficult concept to sell.

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

And considered that India has a - each state will have to also pass a different law to legalise sports betting gambling 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 concept having been endorsed by an official panel for the very first time, at least a dispute has actually ignited around a subject - which up until now was considered a taboo.