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 press 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 central Mumbai, a middle-aged guy is watching the game, nervously. He's resting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

He has made more than 10 employ the last thirty minutes - not to go over the match but to keep modifying his bet.

Five minutes previously his money was on Australia, and now as the Indian batsman prepares yourself to face the last over he's changed his mind.

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

And a few minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

"I have made $200 today," he states with a childlike glee.

For more than 3 years he's been wagering on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering syndicates flourish 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 avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest individual run scorer.
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The majority of these transactions involve so-called "black cash", which is money not declared to the taxman.

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

And overseas wagering business are utilizing this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with overseas companies.

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

But despite 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 idea, stating it would help secure down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been banned for 2 years after some gamers and team authorities were found guilty of fixing parts of the match at the request of bookies.

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

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

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

It would likewise open a huge business chance for certified bookies and worldwide online wagering companies to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue many, by assisting make transactions included in gambling more transparent.

"If you work alongside sports betting companies, you will have a really efficient approach of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.
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But numerous also believe, that the taxes levied on the bettor and the bookie will have to be affordable to make it appealing enough for them to bet legally.
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However, there are limitations.

"Definitely there will be unlawful wagering because (some) people would not desire to leave an audit trail by getting in the white market," says Mr Oborne.
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He includes that people who use unaccounted money to place big bets will never bet legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to create a new law, and politically this will be a tough concept to offer.

"Despite the fact that numerous people are involved in some sort of gambling - it's still a questionable issue for many," says our unnamed punter.

And considered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting gambling in their territory.

"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

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