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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 needing 17 go to win versus Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is watching the video game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has made more than 10 contact the last 30 minutes - not to go over the match but to keep revising his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman prepares yourself to face the last over he's altered his mind.

"I think India is winning, make the modification," he informs his bookmaker on the phone.
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And a few minutes later on his prediction comes to life, as India wins the match in a nail-biting finish.

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

For more than 3 decades he's been wagering on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting distributes grow in the country.
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'Black cash'

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

With no legal opportunity, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

Most of these deals 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 prohibiting internet sports betting, there is absolutely nothing comparable here.

And overseas sports betting companies are utilizing this loophole to draw Indians. Although there are no operators based out of India, a lot people have registered accounts with overseas firms.

"Legally you can escape [with this], as the law is ambiguous for online gambling," states Mumbai- based attorney HP Ranina.

But in spite of this, it is "offline gambling", done through phone calls which dominate the market.

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 idea, stating it would help clamp down on corruption in the country'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 sports betting scandal came to light.

Two franchises have been banned for 2 years after some gamers and team officials were found guilty of repairing parts of the match at the request of bookies.

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

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

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

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

And it would help limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions included in gambling more transparent.
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"If you work along with sports betting business, you will have a really reliable approach of marking out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous also believe, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

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

He adds that individuals who use unaccounted money to put huge bets will never bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard idea to offer.

"Despite the fact that many people are included in some sort of gambling - it's still a questionable issue for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting gambling 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 concept having actually been endorsed by an official panel for the very first time, at least an argument has actually sparked around a topic - which previously was considered a taboo.