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 needing 17 runs to win against Australia.

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

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

Five minutes previously his cash was on Australia, now as the Indian batsman prepares to face the last over he's altered 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 real, 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 unlawful in India.

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

'Black cash'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest specific run scorer.

Most of these transactions include so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any type of sports betting in India, however unlike in the US which has a law forbiding internet sports betting, there is nothing comparable here.
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And offshore wagering companies are utilizing this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with offshore firms.

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

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

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, stating it would help secure down on corruption in the country's favourite sport.
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The Justice RM Lodha Commission was set up to suggest modifications 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 emerged.

Two franchises have actually been banned for two years after some gamers and group officials were found guilty of fixing parts of the match at the behest of bookmakers.
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The panel likewise argues that legalised wagering will generate tax profits for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the right instructions.

"I don't mind paying some cash out my profits, as long as I can bet publicly," states our cricket bettor.

It would also open a substantial company opportunity for certified bookies and global online wagering business to establish operations in India.

And it would help restrict match in cricket and other sports betting, argue many, by helping make transactions involved in sports betting more transparent.

"If you work along with sports betting business, you will have an extremely efficient technique of marking out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

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

However, there are restrictions.

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

He includes that people who utilize unaccounted money to position 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 hard idea to offer.

"Despite the fact that many individuals are associated with some sort of gambling - it's still a questionable issue for numerous," says 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 cynical about this coming true anytime quickly."

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