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Howzat? The clamour to legalise sports betting in India
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Published

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 central 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 right-hand man.

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

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

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

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

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

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

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, prohibited sports betting syndicates flourish in the nation.

'Black cash'

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

With no legal opportunity, punters put bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

Most of these deals include so-called "black cash", which is money 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 web gaming, there is absolutely nothing similar here.

And offshore sports betting business are using this loophole to lure Indians. Although there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

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

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

Calls for legalisation

The clamour to legalise sports betting in cricket has 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 preferred sport.

The Justice RM Lodha Commission was established 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 actually been banned for 2 years after some players and group officials were condemned of repairing parts of the match at the behest of bookmakers.

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

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

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

It would also open a huge company chance for licensed bookies and international online wagering companies to set up operations in India.

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

"If you work along with sports betting business, you will have a very effective technique of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise believe, that the taxes levied on the gambler and the bookmaker will need to be sensible to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) people wouldn't want to leave an audit path by getting in the white market," says Mr Oborne.

He includes that people who use unaccounted cash to place huge bets will never bet legally.

Approval concern

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

"Even though lots of people are included in some sort of gaming - it's still a questionable issue for lots of," says our unnamed punter.

And provided that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their territory.
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"The process 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 concept having been backed by an official panel for the very first time, a minimum of a dispute has ignited around a topic - which up until now was thought about a taboo.