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 reporter

It is the last over of the cricket match, with India requiring 17 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male is seeing the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has made more than 10 contact the last thirty minutes - not to talk about the match but to keep revising his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman gets all set to deal with the last over he's changed his mind.

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

And a couple of minutes later on his forecast comes real, as India wins the match in a nail-biting finish.

"I have actually made $200 today," he says 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 prohibited in India.

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

'Black money'
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According to the Doha-based International Centre for sports betting Security, India's illegal sports betting wagering market is worth some $150bn a year. And much of that sports betting 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 related to the cricket match, from who is winning to the greatest individual run scorer.

The majority of these deals include so-called "black cash", which is cash not stated to the taxman.
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The 1867 Public Gambling Act bars any kind of sports betting in India, but unlike in the US which has a law prohibiting web sports betting, there is nothing comparable here.

And business are utilizing this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with offshore companies.

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

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

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been banned for 2 years after some players and group authorities were found guilty of fixing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax incomes for the exchequer that could amount to $2bn a year.

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

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," states our cricket bettor.

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

And it would help limit match repairing in cricket and other sports betting, argue numerous, by assisting make transactions included in gambling more transparent.

"If you work along with sports betting companies, you will have an extremely effective technique of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.
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But many likewise believe, that the taxes imposed on the bettor and the bookmaker will have to be affordable to make it attractive enough for them to gamble legally.

However, there are limitations.
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"Definitely there will be prohibited sports betting because (some) individuals would not desire to leave an audit path by going into the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to place big bets will never gamble legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be needed to develop a new law, and politically this will be a difficult concept to sell.

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

And offered that India has a federal structural - each state will have 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," says Mr Ranina."That's why, we are negative about this becoming a truth anytime quickly."

Yet with the concept having been endorsed by a main panel for the first time, a minimum of an argument has actually ignited around a topic - which previously was thought about a taboo.
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