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Howzat? The clamour to legalise sports betting 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 go to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged guy is watching the game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

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

Five minutes previously his money was on Australia, now as the Indian batsman gets ready to deal with the last over he's altered his mind.

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

And a couple of minutes later his forecast comes true, as India wins the match in a nail-biting finish.

"I have made $200 today," he states with a childlike glee.

For more than three decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Besides horse racing, sports betting wagering of any kind is not enabled in India. Despite that, illegal sports betting syndicates prosper in the country.

'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 gambling cash is directed towards cricket.

With no legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

Most of these deals include so-called "black cash", which is cash not stated to the taxman.

The 1867 Public Gambling Act bars any sort of gambling in India, but unlike in the US which has a law restricting web sports betting, there is absolutely nothing comparable here.

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

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

But regardless of this, it is "offline gambling", done through phone calls which dominate the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the performance 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 prohibited for two years after some gamers and group officials were condemned of repairing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax revenues for the exchequer that might amount 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 money out my earnings, as long as I can bet openly," says our cricket bettor.

It would also open a huge organization opportunity for licensed bookies and worldwide online wagering companies to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue many, by helping make deals associated with gambling more transparent.

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

But many likewise think, that the taxes imposed 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 prohibited sports betting since (some) people would not wish to leave an audit path by getting in the white market," states Mr Oborne.

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

Approval question

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

"Despite the fact that lots of people are involved in some sort of gambling - it's still a controversial problem for lots of," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling in their area.
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"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

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