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 go to win versus Australia.

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

He has made more than 10 contact the last thirty minutes - not to go over the match however to keep revising his bet.

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

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

And a few minutes later his forecast becomes a reality, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he says with a childlike 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 unlawful in India.

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, prohibited sports betting distributes prosper in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's illegal 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 place bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest private run scorer.

The majority of these transactions include so-called "black money", which is money not stated to the taxman.

The 1867 Act bars any sort of sports betting in India, however unlike in the US which has a law prohibiting web gambling, there is absolutely nothing similar here.

And offshore sports betting companies are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore firms.

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

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

Require legalisation

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

The Justice RM Lodha Commission was established to recommend 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 prohibited for two years after some gamers and team officials were condemned of repairing parts of the match at the behest of bookies.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that might total up to $2bn a year.
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Even bettors 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 openly," states our cricket gambler.

It would likewise open a substantial service chance for licensed bookies and worldwide online wagering business to establish operations in India.

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

"If you work along with sports betting business, you will have a really reliable method of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous likewise think, that the taxes imposed on the gambler and the bookmaker will have to be reasonable to make it appealing enough for them to bet legally.

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) individuals would not wish to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that individuals who utilize unaccounted cash to place huge bets will never bet lawfully.

Approval concern

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 idea to offer.

"Even though many individuals are involved in some sort of gambling - it's still a questionable issue for many," says our unnamed punter.
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And considered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.
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"The process is so long and challenging 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 endorsed by a main panel for the first time, a minimum of a dispute has ignited around a topic - which previously was considered a taboo.