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 against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged guy is watching the game, nervously. He's sitting on the edge of his couch with his smart phone glued to his right-hand man.

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

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

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

And a couple of minutes later his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

For more than three decades he's been sports betting on cricket matches. We can't expose his name as what he's doing is prohibited in India.

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

'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 sports betting cash is directed towards cricket.
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Without any legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And offshore wagering companies are using this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot individuals 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 legal representative HP Ranina.
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But despite this, it is "offline gambling", done through call which dominate the market.

Require legalisation

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

Two franchises have been banned for two years after some players and group authorities were discovered guilty of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax revenues for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the ideal instructions.

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," says our cricket gambler.
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It would likewise open a big service chance for certified bookmakers and worldwide online sports betting companies to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by helping make transactions included in sports betting more transparent.
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"If you work alongside wagering companies, you will have an extremely efficient method of marking out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise think, that the taxes levied on the gambler 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 illegal wagering because (some) individuals wouldn't desire to leave an audit trail by going into the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to place big bets will never bet lawfully.

Approval question

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

"Although lots of people are associated with some sort of gambling - it's still a controversial concern for numerous," 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 in their territory.

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime soon."

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