Howzat? The clamour to legalise sports betting wagering in India
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Published

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 requiring 17 runs to win versus Australia.

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

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

Five minutes previously his cash was on Australia, but now as the Indian batsman prepares yourself 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 becomes a reality, as India wins the match in a nail-biting surface.

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

For more than three years he's been banking on cricket matches. We can't reveal 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 cash'

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 money is directed towards cricket.

Without any legal avenue, punters place 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 specific run scorer.

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

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

And overseas wagering business are utilizing this loophole to tempt Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have registered accounts with offshore firms.

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

But regardless of this, it is "offline gaming", done through phone calls which control the market.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, saying it would help clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established 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 sports betting scandal came to light.

Two franchises have been banned for two years after some players and team officials were condemned of repairing parts of the match at the wish of bookies.

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

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

"I don't mind paying some money out my profits, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a huge service chance for licensed bookmakers and worldwide online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by assisting make deals associated with gambling more transparent.

"If you work alongside wagering business, you will have a really efficient technique of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But numerous also think, that the taxes imposed on the bettor and the bookmaker will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals would not wish to leave an audit trail by entering the white market," says Mr Oborne.

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

Approval question

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

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

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

Yet with the concept having been backed by an official panel for the very first time, at least a debate has ignited around a subject - which previously was considered a taboo.
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