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Howzat? The clamour to legalise sports betting wagering 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 runs to win versus Australia.

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

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 money was on Australia, today as the Indian batsman prepares to deal with the last over he's altered his mind.

"I believe India is winning, make the modification," he informs his bookmaker on the phone.

And a couple of minutes later on his prediction comes true, as India wins the match in a nail-biting surface.

"I have made $200 today," he states with a childlike glee.

For more than three years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, illegal sports betting distributes thrive in the country.

'Black money'

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

With no legal avenue, punters put bets utilizing 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 transactions include so-called "black money", which is money not stated to the taxman.

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

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

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

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

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend 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 emerged.

Two franchises have been banned for 2 years after some gamers and team officials were discovered guilty of repairing parts of the match at the behest of bookies.

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

Even bettors feel that legalising sports betting wagering is a relocation in the ideal instructions.

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

It would also open a substantial service opportunity for licensed bookies and worldwide online wagering business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by helping make transactions associated with gambling more transparent.

"If you work together with sports betting companies, you will have a very efficient approach of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise think, that the taxes imposed on the bettor and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal sports betting due to the fact that (some) people wouldn't desire to leave an audit trail by entering the white market," says Mr Oborne.

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

Approval question

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

"Although lots of people are included in some sort of sports betting - it's still a questionable concern for numerous," states 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 in their territory.
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"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime soon."

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