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 needing 17 go to win versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged guy is seeing 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 made more than 10 contact the last 30 minutes - not to talk about the match but to keep revising his bet.

Five minutes previously his money 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 few minutes later his prediction comes real, as India wins the match in a nail-biting finish.
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"I have actually made $200 today," he says with a childlike glee.

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

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

'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 opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest 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 kind of gambling in India, but unlike in the US which has a law prohibiting internet gaming, there is nothing comparable here.

And overseas wagering companies are using this loophole to lure Indians. Although there are no online wagering 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 uncertain for online sports betting," says Mumbai- based attorney HP Ranina.

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

Calls for legalisation
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The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, stating it would help clamp down on corruption in the country's preferred sport.

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

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

The panel likewise argues that legalised wagering will bring in tax profits for the exchequer that might amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a relocation in the right instructions.

"I do not mind paying some cash out my profits, as long as I can bet publicly," states our cricket gambler.

It would also open a big service opportunity for certified bookies and worldwide online wagering companies to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by assisting make deals associated with gambling more transparent.

"If you work alongside sports betting business, you will have a really efficient technique of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous also believe, that the taxes imposed on the bettor and the bookie will need to be sensible to make it appealing enough for them to bet lawfully.

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

He includes that people who use unaccounted money to place huge bets will never gamble lawfully.

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 hard idea to offer.

"Even however many people are included in some sort of sports betting - it's still a controversial concern for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their territory.

"The procedure is so long and difficult that it will take years," says 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 very first time, at least an argument has actually fired up around a subject - which previously was thought about a taboo.