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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 go to win against Australia.

In his two-bedroom home located in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

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

Five minutes previously his cash was on Australia, today as the Indian batsman gets prepared 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 few minutes later his forecast comes true, as India wins the match in a nail-biting surface.

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

For more than 3 years he's been sports betting on cricket matches. We can't expose his name as what he's doing is prohibited in India.

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

'Black money'

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

Without any legal opportunity, punters position 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.

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

The 1867 Public Gambling Act bars any type of gaming in India, however unlike in the US which has a law restricting internet gambling, there is nothing comparable here.
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And overseas sports betting companies are using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with overseas companies.

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, 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 performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

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 behest of bookmakers.

The panel also argues that legalised sports betting will generate tax earnings for the exchequer that could total up to $2bn a year.

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

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," says our cricket bettor.

It would also open a big business opportunity for certified bookies and international online wagering business to establish operations in India.

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

"If you work along with wagering business, you will have a really effective method of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookie will have to be reasonable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited wagering due to the fact that (some) individuals would not want to leave an audit trail by going into the white market," says Mr Oborne.
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He adds that individuals who utilize unaccounted money to place big bets will never ever bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a difficult concept to sell.
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"Even though many individuals are included in some sort of sports betting - it's still a questionable concern for many," 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 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 coming true anytime quickly."

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