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Howzat? The clamour to legalise sports betting in India

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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 watching the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

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

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

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

And a few minutes later his forecast becomes a reality, as India wins the match in a nail-biting finish.

"I have actually 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 illegal in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, prohibited wagering distributes thrive in the nation.

'Black money'

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

With no legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law prohibiting internet gambling, there is absolutely nothing comparable here.

And overseas sports betting companies are utilizing this loophole to lure Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have actually signed up accounts with overseas firms.

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

But in spite of this, it is "offline gambling", done through call which control the market.
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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, saying it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to suggest changes 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 emerged.

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 likewise argues that legalised sports betting will bring in tax profits for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a relocation in the best direction.

"I do not mind paying some cash out my earnings, as long as I can gamble publicly," says our cricket gambler.

It would also open a huge company opportunity for licensed bookies and international online sports betting companies to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by helping make transactions involved in sports betting more transparent.

"If you work alongside wagering business, you will have a really reliable method of stamping out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But many also believe, that the taxes imposed on the bettor and the bookmaker will have to be reasonable to make it attractive enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be illegal wagering due to the fact that (some) people would not want to leave an audit path by going into the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to put big bets will never bet legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a tough concept to offer.

"Despite the fact that numerous people are involved in some sort of gaming - 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 tricky that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the idea having actually been endorsed by an official panel for the very first time, at least a dispute has fired up around a topic - which until now was thought about a taboo.