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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 press reporter

It is the last over of the cricket match, with India requiring 17 runs to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male is watching the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

He has made more than 10 calls in the last 30 minutes - not to discuss the match but to keep revising his bet.

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

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

And a few minutes later on his forecast becomes a reality, as India wins the match in a nail-biting surface.

"I have actually 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 prohibited in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful wagering distributes flourish in the nation.

'Black cash'

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

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

Most of these transactions involve so-called "black money", which is cash not declared to the taxman.
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The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law forbiding internet sports betting, there is nothing comparable here.

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

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

But regardless of this, it is "offline sports betting", done through call which dominate 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 concept, stating it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulatory body, the Board of Control for in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been banned for 2 years after some gamers and team officials were discovered guilty of fixing parts of the match at the wish of bookmakers.

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

Even bettors feel that legalising sports betting wagering is a move in the ideal instructions.

"I do not mind paying some money out my revenues, as long as I can gamble openly," states our cricket gambler.

It would also open a substantial organization opportunity for certified bookmakers and international online wagering business to establish operations in India.

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

"If you work along with wagering companies, you will have a very reliable method of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of also think, that the taxes imposed on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble legally.

However, there are limitations.

"Definitely there will be prohibited sports betting because (some) individuals would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He includes that people who utilize unaccounted cash to position big bets will never bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a hard idea to offer.

"Despite the fact that many individuals are included in some sort of gambling - it's still a controversial issue for many," states our unnamed punter.

And given that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting 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 coming true anytime soon."

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