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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 against Australia.

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

He has made more than 10 hire the last thirty minutes - not to discuss the match however to keep modifying his bet.

Five minutes previously his money was on Australia, however now as the Indian batsman gets ready to face the last over he's altered his mind.

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

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

"I have actually made $200 today," he says with a childish glee.

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

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, illegal wagering syndicates prosper in the country.

'Black cash'

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

With no legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the highest private 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 kind of gaming in India, but unlike in the US which has a law prohibiting web sports betting, there is absolutely nothing comparable here.

And overseas wagering companies are using this loophole to lure Indians. Even though there are no online wagering 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 gambling," says Mumbai- based lawyer HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest changes in the functioning of India's cricket regulatory 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 players and team officials were found guilty of repairing parts of the match at the request of bookies.

The panel likewise argues that legalised sports betting will bring in tax earnings for the exchequer that could total up to $2bn a year.

Even gamblers feel that legalising sports betting is a move in the best direction.

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

It would likewise open a huge business opportunity for licensed bookies and international online sports betting companies to establish operations in India.

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

But numerous also believe, that the taxes levied on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be prohibited wagering because (some) people would not wish to leave an audit path by going into the white market," says Mr Oborne.

He adds that people who use unaccounted money to put huge bets will never ever gamble legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a difficult concept to sell.

"Although many individuals are associated with some sort of sports betting - it's still a controversial concern for many," states our unnamed punter.

And considered that India has a - each state will need to also pass a different law to legalise sports betting in their territory.
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"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, at least an argument has actually fired up around a topic - which previously was thought about a taboo.