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Howzat? The clamour to legalise sports betting wagering 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 against Australia.
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In his two-bedroom home situated in main Mumbai, a middle-aged guy is watching the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his right-hand man.

He has actually made more than 10 employ the last 30 minutes - not to talk about the match but to keep revising his bet.

Five minutes previously his cash was on Australia, today as the Indian batsman gets prepared to deal with the last over he's altered his mind.

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

And a few minutes later on his forecast becomes a reality, as India wins the match in a nail-biting finish.
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"I have 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 illegal in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful sports betting distributes prosper 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 put bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

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

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

But despite this, it is "offline gambling", done through call which dominate the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist 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 regulatory 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 two years after some gamers and group officials were condemned of repairing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the best direction.

"I don't mind paying some money out my revenues, as long as I can gamble openly," states our cricket bettor.

It would also open a big business chance for licensed bookmakers and global online wagering companies to establish operations in India.

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

"If you work together with wagering companies, you will have an extremely effective technique of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise believe, that the taxes imposed on the gambler and the bookie will have to be reasonable to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be illegal sports betting due to the fact that (some) people wouldn't wish to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that people who use unaccounted cash to put huge bets will never ever bet lawfully.

Approval concern

For to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a difficult concept to sell.

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

And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their area.

"The process is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime quickly."

Yet with the concept having been backed by an official panel for the very first time, a minimum of a dispute has actually ignited around a subject - which until now was considered a taboo.