Howzat? The clamour to legalise sports betting wagering in India

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5 February 2016

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By Sameer Hashmi

reporter
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It is the last over of the cricket match, with India needing 17 runs to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged man is enjoying the 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 30 minutes - not to discuss the match however to keep revising his bet.

Five minutes previously his cash 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 tells his bookie on the phone.

And a couple of minutes later his prediction comes true, as India wins the match in a nail-biting surface.

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

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting distributes grow in the country.
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'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 cash is directed towards cricket.

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

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

The 1867 Public Gambling Act bars any sort of gambling in India, but unlike in the US which has a law restricting web sports betting, there is nothing comparable here.
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And offshore wagering business are using this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with offshore firms.

"Legally you can escape [with this], as the law is unclear for online sports betting," 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 actually grown after a panel designated by India's Supreme Court proposed the idea, 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 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 actually been banned for two years after some players and group officials were found guilty of fixing parts of the match at the wish of bookies.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that might total up to $2bn a year.

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

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

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

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by helping make transactions involved in sports betting more transparent.
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"If you work along with sports betting companies, you will have a very efficient approach of marking out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise 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 restrictions.

"Definitely there will be illegal wagering since (some) people wouldn't wish to leave an audit path by going into the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to place huge bets will never gamble lawfully.

Approval concern

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

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

And considered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their territory.
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"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a reality anytime soon."

Yet with the concept having been backed by a main panel for the first time, at least an argument has actually fired up around a topic - which previously was considered a taboo.