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 requiring 17 go to win against Australia.

In his two-bedroom house located in central Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

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

Five minutes earlier his cash was on Australia, now as the Indian batsman gets ready to face the last over he's changed his mind.

"I think India is winning, make the modification," he tells his bookmaker on the phone.

And a couple of minutes later on his prediction comes to life, 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 decades he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting of any kind is not allowed in India. Despite that, unlawful sports betting syndicates grow in the country.
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'Black money'

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

With no legal avenue, punters place 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 specific run scorer.
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The majority of these transactions involve so-called "black cash", which is money not stated to the taxman.

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

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

"Legally you can escape [with this], as the law is ambiguous for online sports betting," says Mumbai- based lawyer HP Ranina.

But regardless of this, it is "offline sports betting", done through phone calls which dominate the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, stating it would help 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 regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been prohibited for two years after some gamers and group officials were found guilty of fixing parts of the match at the wish of bookmakers.
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The panel likewise argues that legalised wagering will generate tax earnings for the exchequer that could total up to $2bn a year.
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Even bettors feel that legalising sports betting is a move in the best instructions.

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

It would likewise open a big company chance for licensed bookmakers and worldwide online wagering companies to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by assisting make deals involved in sports betting more transparent.

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

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

However, there are limitations.
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"Definitely there will be prohibited wagering since (some) people would not wish to leave an audit trail by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to place big bets will never gamble legally.

Approval question

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

"Despite the fact that lots of individuals are associated with some sort of sports betting - it's still a controversial problem for lots of," states our unnamed punter.

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

"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 quickly."

Yet with the idea having actually been endorsed by an official panel for the very first time, a minimum of a dispute has actually sparked around a topic - which previously was thought about a taboo.