Howzat? The clamour to legalise sports betting in India
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Published

5 February 2016

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By Sameer Hashmi
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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 central Mumbai, a middle-aged guy is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his best hand.

He has actually made more than 10 calls in the last 30 minutes - not to go over the match however to keep modifying his bet.

Five minutes earlier his cash 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 bookie on the phone.
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And a couple of minutes later on his forecast comes to life, as India wins the match in a nail-biting surface.

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

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

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

'Black money'

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

With no legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest specific run scorer.
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The majority of these deals include so-called "black cash", which is cash not declared to the taxman.

The 1867 Act bars any sort of gambling in India, however unlike in the US which has a law forbiding internet gaming, there is absolutely nothing similar here.

And overseas wagering business are utilizing this loophole to entice Indians. Although there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore companies.

"Legally you can get away [with this], as the law is uncertain for online gambling," states Mumbai- based legal representative HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend 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 wagering scandal came to light.

Two franchises have been prohibited for 2 years after some gamers and team officials were condemned of fixing parts of the match at the request of bookmakers.

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 ideal direction.

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

It would also open a huge organization chance for certified bookmakers and global online sports betting companies to establish operations in India.

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

"If you work along with wagering companies, you will have a very efficient approach of marking out match fixing," says George Oborne, who runs a mock sports betting website, India Bet.

But many also think, that the taxes imposed on the bettor and the bookie will have to be reasonable to make it attractive enough for them to gamble legally.
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However, there are restrictions.

"Definitely there will be illegal wagering due to the fact that (some) individuals would not want to leave an audit trail by getting in the white market," states Mr Oborne.
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He adds that people who utilize unaccounted cash to put huge bets will never ever bet legally.

Approval question

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

"Despite the fact that lots of people are included in some sort of gambling - it's still a questionable problem for lots of," states 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 in their territory.

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime soon."

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