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 runs to win versus Australia.

In his two-bedroom home located in main Mumbai, a middle-aged guy is watching the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has actually made more than 10 calls in the last 30 minutes - not to talk about the match however to keep revising his bet.

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

"I think India is winning, make the modification," he tells his bookmaker on the phone.

And a couple of minutes later 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 3 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting of any kind is not allowed India. Despite that, illegal wagering distributes in the country.

'Black money'

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

Without any legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And overseas wagering business are utilizing this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot people have signed up accounts with overseas firms.

"Legally you can escape [with this], as the law is uncertain for online sports betting," says Mumbai- based attorney HP Ranina.

But regardless of this, it is "offline gambling", done through call which dominate the market.
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Calls for legalisation
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The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the nation's preferred sport.

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

Two franchises have actually been prohibited for two years after some gamers and group authorities were condemned of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised sports betting will generate tax earnings for the exchequer that might total up to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the ideal instructions.

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

It would also open a huge organization opportunity for licensed bookmakers and global online sports betting business to set up operations in India.

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

"If you work alongside sports betting business, 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 lots of likewise believe, that the taxes imposed on the bettor and the bookie will need to be sensible to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited wagering because (some) individuals would not wish to leave an audit path by entering the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to position big bets will never ever gamble lawfully.

Approval question

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

"Despite the fact that lots of people are associated with some sort of gaming - it's still a controversial problem for lots of," states our unnamed punter.

And given that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their area.
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"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the idea having been backed by an official panel for the first time, at least an argument has actually ignited around a subject - which till now was thought about a taboo.