Howzat? The clamour to legalise sports betting wagering 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 requiring 17 runs to win versus Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged man is watching the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.
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He has made more than 10 contact the last 30 minutes - not to discuss the match however to keep modifying 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 changed his mind.

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

And a few minutes later his forecast comes real, as India wins the match in a nail-biting finish.

"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 reveal his name as what he's doing is in India.

Besides horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited wagering distributes prosper in the country.

'Black money'

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 sports betting money is directed towards cricket.

With no legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

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

And offshore sports betting companies are using this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with offshore companies.

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

But regardless of this, it is "offline gaming", done through call which dominate the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the country's favourite sport.
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The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulative 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 two years after some gamers and group officials were condemned of fixing parts of the match at the behest of bookmakers.

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

Even gamblers feel that legalising sports betting is a relocation in the ideal instructions.

"I don't mind paying some money out my revenues, as long as I can bet publicly," says our cricket bettor.

It would also open a big business chance for licensed bookies and international online sports betting business to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue many, by assisting make deals associated with sports betting more transparent.
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"If you work alongside sports betting business, you will have an extremely effective technique of stamping out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes levied on the bettor and the bookmaker will have to be affordable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful sports betting because (some) people wouldn't desire to leave an audit path by getting in the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to put big bets will never bet legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to develop a brand-new law, and politically this will be a hard concept to sell.
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"Despite the fact that lots of people are involved in some sort of gambling - it's still a questionable problem for many," states our unnamed punter.

And given that India has a federal structural - each state will need 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 negative about this coming true anytime soon."

Yet with the concept having actually been endorsed by an official panel for the first time, a minimum of an argument has sparked around a subject - which till now was considered a taboo.
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