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Howzat? The clamour to legalise sports betting wagering in India

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 go to win against Australia.

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

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

Five minutes previously his money was on Australia, 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 couple of minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

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

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting syndicates grow 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.

Without any legal opportunity, punters place 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 run scorer.

Most of these deals include so-called "black cash", 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 prohibiting internet gambling, there is absolutely nothing similar here.

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

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

But despite this, it is "offline gaming", done through phone calls which dominate the marketplace.

Calls for legalisation

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

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 wagering scandal emerged.

Two franchises have been banned for 2 years after some gamers and team officials were condemned of fixing parts of the match at the request of bookies.

The panel also argues that legalised sports betting will generate tax profits for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting wagering is a relocation in the ideal direction.

"I don't mind paying some cash out my earnings, as long as I can bet openly," says our cricket bettor.

It would also open a big organization opportunity for licensed bookmakers and global online wagering companies to establish operations in India.

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

"If you work alongside sports betting business, you will have an extremely effective method of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But lots of likewise believe, that the taxes imposed on the gambler and the bookie will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be unlawful wagering due to the fact that (some) people wouldn't desire 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 gamble legally.
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Approval question

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a hard concept to sell.

"Even though many individuals are associated with some sort of gaming - it's still a controversial problem for lots of," states our unnamed punter.

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

"The procedure 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 endorsed by a main panel for the very first time, at least a dispute has actually fired up around a subject - which until now was thought about a taboo.
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