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
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It is the last over of the cricket match, with India requiring 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 sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.
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He has made more than 10 employ the last 30 minutes - not to discuss the match however to keep revising his bet.

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

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

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

"I have actually made $200 today," he states with a childish glee.
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For more than three decades he's been wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

Besides horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited sports betting distributes thrive in the country.

'Black money'

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

Most of these transactions include so-called "black money", which is money not declared to the taxman.
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The 1867 Public Gambling Act bars any type of sports betting in India, however unlike in the US which has a law forbiding internet gambling, there is nothing similar here.

And offshore wagering business are utilizing this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot people have signed up accounts with overseas firms.

"Legally you can get away [with this], as the law is ambiguous for online gambling," says Mumbai- based attorney HP Ranina.

But despite this, it is "offline gambling", done through phone calls which control the market.

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed 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 regulative 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 two years after some gamers and group officials were discovered guilty of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will generate tax revenues for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a relocation in the best direction.
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"I don't mind paying some money out my revenues, as long as I can gamble publicly," says our cricket gambler.

It would likewise open a huge organization opportunity for certified bookies and international online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by assisting make transactions associated with sports betting more transparent.

"If you work along with wagering companies, you will have an extremely effective method of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookie 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 due to the fact that (some) individuals wouldn't wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted money to huge bets will never ever bet lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a difficult idea to sell.

"Although many individuals are involved in some sort of gaming - it's still a controversial issue for many," says our unnamed punter.

And offered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting in their area.

"The procedure is so long and tricky that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

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