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 reporter

It is the last over of the cricket match, with India needing 17 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged man is watching the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his best hand.

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

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

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

And a couple of 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 childlike glee.

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

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, illegal wagering syndicates flourish in the nation.

'Black money'

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.

With no legal opportunity, punters place 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 greatest private run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law restricting web gambling, there is nothing comparable here.

And overseas sports betting business are using this loophole to tempt 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 escape [with this], as the law is unclear for online gambling," says Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline gambling", done through call which dominate the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the nation's favourite 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 wagering scandal came to light.

Two franchises have actually been banned for 2 years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookies.

The panel likewise 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 ideal instructions.
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"I don't mind paying some cash out my earnings, as long as I can gamble openly," states our cricket bettor.

It would likewise open a substantial company chance for licensed bookies and international online wagering companies to set up 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 along with wagering companies, you will have a very efficient technique of marking out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful wagering because (some) people would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to position big bets will never ever gamble legally.
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Approval question

For sports betting to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a hard concept to sell.

"Although lots of people are associated with some sort of sports betting - it's still a controversial concern for numerous," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling in their territory.

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

Yet with the concept having been endorsed by an official panel for the first time, at least a debate has sparked around a subject - which till now was considered a taboo.
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