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.

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

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

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

"I think India is winning, make the change," he informs his bookie on the phone.

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

"I have actually made $200 today," he states with a childish 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 prohibited in India.

Aside from horse racing, sports betting of any kind is not enabled in India. Despite that, illegal sports betting distributes thrive in the country.

'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 opportunity, punters place bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest specific run scorer.

The majority of these transactions involve so-called "black money", which is cash not declared to the taxman.

The 1867 Act bars any kind of gaming in India, however unlike in the US which has a law forbiding web gambling, there is absolutely nothing similar here.

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

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

But in spite of this, it is "offline sports betting", done through call which dominate the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, saying it would help clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to suggest 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 came to light.

Two franchises have actually been banned for 2 years after some gamers and group authorities were condemned of repairing parts of the match at the wish of bookies.

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

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

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

It would likewise open a substantial company opportunity for licensed bookmakers and worldwide online wagering business to establish operations in India.

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

"If you work along with wagering companies, you will have a really reliable method of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise believe, that the taxes imposed on the gambler and the bookie will need to be affordable to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering due to the fact that (some) individuals would not desire to leave an audit trail by going into the white market," says Mr Oborne.

He includes that people who use unaccounted money to place big bets will never ever bet 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 difficult idea to offer.

"Even though many individuals are associated with some sort of gambling - it's still a controversial issue for numerous," says 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.
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"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the idea having actually been endorsed by an official panel for the very first time, at least an argument has actually ignited around a subject - which up until now was thought about a taboo.
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