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Howzat? The clamour to legalise sports betting in India

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 needing 17 runs to win against Australia.

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

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

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

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

And a few minutes later on his forecast comes real, 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 wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, illegal sports betting syndicates prosper in the country.

'Black money'

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

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

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

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

And offshore wagering business are using this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have registered accounts with offshore companies.

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

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

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to suggest changes in the functioning 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 been prohibited for 2 years after some gamers and team authorities were found guilty of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will generate tax profits for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a substantial business chance for licensed bookies and global online sports betting companies to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by helping make transactions involved in gambling more transparent.

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

But numerous also believe, that the taxes imposed on the gambler and the will need to be reasonable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal wagering since (some) individuals would not desire to leave an audit trail by going into the white market," says Mr Oborne.

He includes that people who use unaccounted cash to place huge 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 difficult idea to offer.

"Despite the fact that lots of people are involved in some sort of sports betting - it's still a controversial concern for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise 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," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the idea having actually been endorsed by an official panel for the very first time, a minimum of a debate has sparked around a topic - which previously was thought about a taboo.
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