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 against Australia.
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In his two-bedroom home located in central Mumbai, a middle-aged male is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his best hand.

He has made more than 10 employ the last thirty minutes - not to go over the match but to keep modifying his bet.

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

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

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

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

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

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

'Black money'

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

With no legal avenue, 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 individual run scorer.

Most of these deals include so-called "black cash", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law restricting internet gaming, there is absolutely nothing comparable here.
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And offshore sports betting business are using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore firms.

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

But despite this, it is "offline gambling", done through call which control the marketplace.

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 concept, stating it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend modifications 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 2 years after some players and group authorities were found guilty of repairing parts of the match at the behest of bookies.

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

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

"I don't mind paying some cash out my revenues, as long as I can bet openly," states our cricket bettor.

It would likewise open a big organization chance for licensed bookmakers and global online sports betting business to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue numerous, by assisting make deals involved in sports betting more transparent.

"If you work together with wagering business, you will have an extremely effective approach of marking out match repairing," says George Oborne, who runs a site, India Bet.

But lots of also believe, that the taxes imposed on the gambler and the bookie will need to be affordable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal sports betting since (some) individuals wouldn't want to leave an audit path by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to place huge bets will never ever gamble lawfully.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a difficult concept to sell.
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"Although lots of people are associated with some sort of gambling - it's still a controversial problem for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their area.

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical 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 ignited around a subject - which previously was thought about a taboo.