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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 press reporter

It is the last over of the cricket match, with India requiring 17 runs to win against Australia.

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

He has made more than 10 hire the last thirty minutes - not to talk about the match however to keep modifying his bet.
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Five minutes earlier his money was on Australia, and now as the Indian batsman prepares yourself to face the last over he's changed his mind.

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

And a few minutes later on his forecast comes to life, 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 3 decades he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'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.
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Without any legal opportunity, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

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

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

And offshore sports betting companies are utilizing this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas companies.

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

But regardless of this, it is "offline gaming", done through telephone call which dominate the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest changes in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier scandal emerged.

Two franchises have been prohibited for two years after some players and team officials were found guilty of fixing parts of the match at the wish of bookies.

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

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

"I do not mind paying some cash out my profits, as long as I can bet openly," says our cricket bettor.

It would likewise open a substantial business chance for licensed bookmakers and worldwide online sports betting companies to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions associated with sports betting more transparent.
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"If you work along with sports betting business, you will have a very efficient method of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it attractive enough for them to gamble legally.
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However, there are restrictions.

"Definitely there will be illegal sports betting since (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted cash to put huge bets will never ever gamble legally.
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Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard concept to offer.

"Although numerous individuals are involved in some sort of sports betting - it's still a controversial issue for lots of," states our unnamed punter.
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And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their territory.

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

Yet with the idea having been endorsed by an official panel for the very first time, a minimum of a debate has actually fired up around a topic - which previously was thought about a taboo.