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 house situated in central Mumbai, a middle-aged man is viewing the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his best hand.

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

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

"I believe India is winning, make the change," he informs his bookie 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 actually made $200 today," he states with a childlike glee.

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

Other than horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting distributes grow in the nation.

'Black money'

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.
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Without any legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private 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 sort of gambling in India, however unlike in the US which has a law prohibiting internet gaming, there is absolutely nothing similar here.

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

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

But regardless of this, it is "offline gambling", done through call which dominate the market.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up 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 wagering scandal emerged.

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

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

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

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," says our cricket gambler.

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

And it would help limit match repairing in cricket and other sports betting, argue lots of, by helping make transactions associated with sports betting more transparent.

"If you work alongside sports betting companies, you will have a very reliable approach of stamping out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

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

However, there are limitations.

"Definitely there will be illegal wagering since (some) individuals wouldn't wish to leave an audit path by getting in the white market," states Mr Oborne.

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

Approval question

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

"Although numerous individuals are included in some sort of gambling - it's still a questionable concern for lots of," states 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 in their territory.

"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having actually been backed by an official panel for the very first time, a minimum of an argument has actually sparked around a subject - which previously was considered a taboo.
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