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 needing 17 go to win against Australia.
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In his two-bedroom home located in main Mumbai, a middle-aged man is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his best hand.
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He has made more than 10 hire the last 30 minutes - not to talk about the match but to keep revising his bet.

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

"I believe India is winning, make the change," he informs his bookie on the phone.

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

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

For more than 3 decades he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal wagering distributes thrive in the nation.

'Black money'

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 cash is directed towards cricket.

Without any legal avenue, punters put 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 greatest specific run scorer.

Most of these transactions include so-called "black cash", which is cash not stated to the taxman.

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

And offshore wagering business are using this loophole to tempt Indians. Although there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas firms.

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

But despite this, it is "offline gaming", done through call which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the performance of India's cricket 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 prohibited for two years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookies.

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

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

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

It would also open a substantial company opportunity for licensed bookies and international online sports betting business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue lots of, by assisting make deals associated with sports betting more transparent.

"If you work alongside sports betting business, you will have an extremely effective method of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) people would not want to leave an audit path by going into the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to put big bets will never gamble lawfully.
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Approval question

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

"Although numerous people are associated with some sort of gambling - it's still a questionable concern for many," states our unnamed punter.

And given that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their territory.

"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 idea having been endorsed by an official panel for the very first time, at least an argument has actually fired up around a subject - which until now was thought about a taboo.