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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 home situated in main Mumbai, a middle-aged man is seeing the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

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

Five minutes previously his cash was on Australia, now as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

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

And a couple of minutes later on his prediction comes to life, as India wins the match in a nail-biting finish.

"I have made $200 today," he states with a childlike 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 prohibited in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering syndicates grow 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 gambling money is directed towards cricket.

With no legal avenue, punters place bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law forbiding web gaming, there is nothing similar here.

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

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

But regardless of this, it is "offline gaming", done through phone calls which control the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by Supreme Court proposed the concept, saying it would assist 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 regulative 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 group officials were discovered guilty of fixing parts of the match at the behest of bookies.
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The panel also argues that legalised wagering will generate tax incomes for the exchequer that could amount to $2bn a year.

Even bettors feel that legalising sports betting is a move in the ideal instructions.
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"I do not mind paying some cash out my revenues, as long as I can gamble openly," states our cricket bettor.

It would likewise open a huge business opportunity for certified bookmakers and global online wagering business to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by helping make transactions involved in sports betting more transparent.

"If you work along with wagering companies, you will have a really effective method of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But many also think, 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 restrictions.

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

He includes that people who use unaccounted money to put big bets will never ever gamble legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a hard concept to sell.

"Despite the fact that lots of people are involved in some sort of sports betting - it's still a questionable problem for lots of," says our unnamed punter.

And given that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their area.
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"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

Yet with the concept having actually been backed by an official panel for the first time, a minimum of a debate has actually ignited around a topic - which up until now was considered a taboo.