Howzat? The clamour to legalise sports betting wagering in India
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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 situated in main Mumbai, a middle-aged man is watching the game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, today as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

"I think India is winning, make the change," he tells his bookie on the phone.

And a couple of minutes later on his forecast comes true, 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 three years he's been wagering 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, unlawful sports betting syndicates thrive in the country.

'Black cash'

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

With no legal avenue, punters place bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

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

And overseas sports betting business are utilizing this loophole to tempt Indians. Although there are no online wagering 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 unclear for online gambling," says Mumbai- based lawyer HP Ranina.

But despite this, it is "offline gambling", done through phone calls which dominate the market.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, stating it would assist secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been prohibited for two years after some players and team authorities were discovered guilty of repairing parts of the match at the request of bookmakers.

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

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

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

It would likewise open a big service opportunity for licensed bookmakers and global online sports betting companies to set up operations in India.
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And it would help fixing in cricket and other sports betting, argue lots of, by helping make deals associated with sports betting more transparent.

"If you work alongside wagering business, you will have a very effective approach of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be prohibited sports betting because (some) individuals wouldn't want to leave an audit path by going into the white market," says Mr Oborne.
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He includes that people who utilize unaccounted money to position big bets will never bet legally.

Approval concern

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

"Even though lots of individuals are included in some sort of gambling - it's still a questionable issue 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.

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

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of a dispute has fired up around a topic - which up until now was thought about a taboo.
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