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Howzat? The clamour to legalise sports betting wagering in India

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 requiring 17 runs to win versus Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is seeing the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his best hand.

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

Five minutes previously his cash was on Australia, today as the Indian batsman prepares to face the last over he's changed his mind.

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

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

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

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.
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Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited sports betting syndicates flourish in the country.
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'Black cash'

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

With no legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest private run scorer.

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

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

And overseas sports betting companies are using this loophole to draw Indians. Although there are no online sports betting operators based out of India, a lot individuals have signed up accounts with overseas firms.

"Legally you can escape [with this], as the law is ambiguous for online gaming," says attorney HP Ranina.

But in spite of this, it is "offline gambling", done through phone calls which dominate 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 idea, stating 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 performance of India's cricket regulatory 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 found guilty of fixing parts of the match at the behest of bookies.

The panel likewise argues that legalised sports betting will bring in tax earnings 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 don't mind paying some cash out my revenues, as long as I can gamble publicly," states our cricket gambler.

It would also open a substantial business chance for licensed bookmakers and global online wagering business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals included in sports betting more transparent.

"If you work along with sports betting business, you will have an extremely effective approach of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

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

However, there are limitations.

"Definitely there will be unlawful wagering due to the fact that (some) people wouldn't wish to leave an audit path by getting in the white market," states Mr Oborne.

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

Approval question

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

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

And considered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling in their territory.
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"The procedure 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 first time, at least a dispute has actually fired up around a subject - which previously was thought about a taboo.