Howzat? The clamour to legalise sports betting wagering in India

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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 house situated in main Mumbai, a middle-aged male is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his ideal hand.

He has made more than 10 hire the last thirty minutes - not to talk about the match however to keep revising his bet.

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

"I believe India is winning, make the change," he informs his bookmaker on the phone.

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

"I have made $200 today," he says with a childish 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 unlawful in India.
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Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting syndicates prosper in the country.

'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 sports betting cash is directed towards cricket.

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.

The majority of these transactions 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, however unlike in the US which has a law prohibiting web gaming, there is absolutely nothing comparable here.

And overseas wagering business are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually registered accounts with overseas firms.

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

But in spite of this, it is "offline gaming", done through call which control the market.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the idea, stating it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest changes 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 been prohibited for two years after some players and team officials were condemned of fixing parts of the match at the wish of bookies.

The panel also argues that legalised sports betting will bring in tax revenues for the exchequer that might amount to $2bn a year.

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

"I don't mind paying some money out my revenues, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a substantial organization chance for licensed bookmakers and global online wagering business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue lots of, by assisting make transactions involved in gambling more transparent.

"If you work together with sports betting companies, you will have a really reliable method of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many likewise 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 illegal sports betting because (some) people would not wish to leave an audit trail by entering the white market," says Mr Oborne.

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

Approval question

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

"Despite the fact that lots of people are included in some sort of gaming - it's still a questionable concern for numerous," says our unnamed punter.

And provided that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their area.
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"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having been endorsed by a main panel for the very first time, a minimum of a debate has actually fired up around a topic - which previously was considered a taboo.
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