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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 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 central Mumbai, a middle-aged guy is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his best hand.

He has actually made more than 10 contact the last thirty minutes - not to talk about the match but to keep modifying his bet.
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Five minutes previously his money was on Australia, 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 change," he informs his bookmaker on the phone.

And a couple of minutes later on his prediction 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 3 decades 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 permitted in India. Despite that, unlawful sports betting distributes thrive in the country.

'Black cash'

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

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

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

The 1867 Public Gambling Act bars any sort of gaming in India, but unlike in the US which has a law prohibiting web sports betting, there is nothing comparable here.

And offshore wagering companies are utilizing this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot people have registered accounts with offshore companies.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 emerged.

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

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

Even bettors feel that legalising sports betting wagering is a relocation in the best direction.
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"I do not mind paying some cash out my profits, as long as I can bet publicly," states our cricket bettor.

It would also open a big business opportunity for certified bookmakers and international online wagering companies to set up operations in India.

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

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

But many likewise believe, that the taxes levied on the gambler and the bookie will need to be sensible to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be unlawful wagering because (some) individuals wouldn't wish to leave an audit trail by going into the white market," says Mr Oborne.
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He adds that individuals who use unaccounted cash to put big bets will never ever bet legally.
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Approval concern

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 idea to sell.

"Even however lots of individuals are involved in some sort of gambling - it's still a controversial issue for lots of," says our unnamed punter.

And offered that India has a federal structural - each state will have to also pass a different law to legalise sports betting 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 ending up being a reality anytime soon."

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