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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
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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 home located in main Mumbai, a middle-aged guy is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

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

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

"I think India is winning, make the change," he tells his bookie on the phone.
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And a couple of minutes later on his prediction becomes a reality, 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 3 years he's been sports betting on cricket matches. We can't expose his name as what he's doing is in India.

Other than horse racing, sports betting of any kind is not enabled in India. Despite that, illegal sports betting distributes prosper in the nation.

'Black cash'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest specific run scorer.

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

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

And offshore wagering companies are utilizing this loophole to lure Indians. Although there are no online sports betting operators based out of India, a lot people have registered accounts with offshore firms.
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"Legally you can get away [with this], as the law is uncertain for online gaming," states Mumbai- based legal representative HP Ranina.

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel selected by India's Supreme Court proposed the concept, stating it would assist secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to recommend 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 sports betting scandal emerged.

Two franchises have actually been prohibited for two years after some players and team authorities were discovered guilty of fixing parts of the match at the behest of bookies.

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

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

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

It would likewise open a huge company opportunity for licensed bookmakers and global online sports betting companies to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by helping make transactions included in gambling more transparent.

"If you work along with sports betting business, you will have a really efficient method of marking out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But lots of also believe, that the taxes levied on the bettor and the bookmaker will have to be affordable to make it appealing enough for them to gamble legally.

However, there are constraints.
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"Definitely there will be prohibited wagering due to the fact that (some) individuals wouldn't desire to leave an audit path by entering the white market," says Mr Oborne.

He includes that people who utilize unaccounted cash to put big bets will never gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to produce a new law, and politically this will be a hard concept to sell.

"Even though lots of people are included in some sort of gaming - it's still a controversial problem for lots of," states 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 territory.

"The procedure 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 concept having been endorsed by an official panel for the first time, a minimum of a dispute has sparked around a topic - which previously was considered a taboo.