Howzat? The clamour to legalise sports betting wagering in India
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Published

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 runs to win against Australia.

In his two-bedroom home situated in central Mumbai, a middle-aged guy is viewing the video 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 actually made more than 10 employ the last thirty minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his money was on Australia, but now as the Indian batsman gets all set to face the last over he's altered his mind.

"I think India is winning, make the change," he tells his bookie on the phone.

And a couple of minutes later his prediction comes to life, as India wins the match in a nail-biting finish.
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"I have 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 prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, prohibited sports betting syndicates prosper in the nation.

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

Without any legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest specific run scorer.
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Most of these transactions include so-called "black cash", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any sort of sports betting in India, but unlike in the US which has a law prohibiting internet sports betting, there is nothing similar here.

And offshore sports betting companies are using this loophole to lure Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have signed up accounts with offshore firms.

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

But in spite of this, it is "offline sports betting", done through telephone call which control the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the nation's favourite sport.
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The Justice RM Lodha Commission was established to suggest changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been prohibited for 2 years after some players and team officials were discovered guilty of repairing parts of the match at the request of bookmakers.

The panel likewise argues that legalised wagering will bring in tax revenues for the exchequer that could 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 earnings, as long as I can gamble openly," says our cricket bettor.

It would also open a big business chance for licensed bookmakers and global online sports betting companies to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by helping make deals involved in sports betting more transparent.

"If you work alongside wagering companies, you will have a really reliable approach of stamping out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also think, that the taxes levied on the gambler and the bookie will need to be affordable to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be prohibited wagering due to the fact that (some) individuals would not want to leave an audit path by going into the white market," states Mr Oborne.

He includes that people who utilize unaccounted money to put huge bets will never ever bet lawfully.

Approval concern

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

"Despite the fact that many individuals are included in some sort of sports betting - it's still a controversial problem for numerous," states our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their area.

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

Yet with the idea having actually been backed by an for the first time, at least a debate has actually ignited around a topic - which up until now was considered a taboo.