Howzat? The clamour to legalise sports betting 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 requiring 17 runs to win against Australia.

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

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

Five minutes earlier his cash was on Australia, today as the Indian batsman gets ready to face the last over he's altered his mind.

"I believe India is winning, make the change," he tells 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 childish glee.

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

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

'Black cash'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest private run scorer.

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

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

And overseas wagering companies are using this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have signed up accounts with offshore companies.
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"Legally you can get away [with this], as the law is unclear for online sports betting," says Mumbai- based legal representative HP Ranina.
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But in spite of 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, saying it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to suggest 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 prohibited for 2 years after some gamers and group authorities were discovered guilty of fixing parts of the match at the wish of bookies.
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The panel likewise argues that legalised wagering will generate tax revenues for the exchequer that could 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 earnings, as long as I can bet openly," says our cricket gambler.

It would also open a huge organization opportunity for certified bookies and global online sports betting companies to establish operations in India.

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

"If you work together with sports betting companies, you will have an extremely efficient technique of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) individuals wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to put huge bets will never bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to create a new law, and politically this will be a tough idea to sell.

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable problem for lots of," 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 process is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the idea having actually been endorsed by an official panel for the very first time, at least a dispute has actually sparked around a topic - which previously was thought about a taboo.
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