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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 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 main Mumbai, a middle-aged guy is seeing the video game, nervously. He's sitting 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 30 minutes - not to talk about the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman prepares yourself to face the last over he's changed his mind.

"I believe India is winning, make the change," he tells his bookmaker on the phone.
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And a couple of minutes later his forecast comes real, as India wins the match in a nail-biting finish.

"I have actually made $200 today," he says 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 in India. Despite that, unlawful sports betting 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 is worth some $150bn a year. And much of that sports betting money is towards cricket.

With no legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can wager on anything related 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 money not stated 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 similar here.

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

"Legally you can escape [with this], as the law is uncertain for online gaming," says Mumbai- based lawyer HP Ranina.
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But regardless of this, it is "offline gaming", done through phone calls which control the market.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, stating it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to suggest 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 emerged.

Two franchises have actually been prohibited for two years after some players and group authorities were condemned of repairing parts of the match at the behest of bookies.

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

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

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

It would likewise open a big company chance for licensed bookies and worldwide online wagering companies to establish operations in India.

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

"If you work along with wagering companies, you will have a really efficient technique of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookie will have to be sensible to make it attractive enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful sports betting because (some) individuals would not want to leave an audit path by entering the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to position big bets will never gamble lawfully.

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

"Even though lots of individuals are included in some sort of gambling - it's still a questionable issue for lots of," states our unnamed punter.

And given that India has a federal structural - each state will need to also pass a different law to legalise sports betting in their territory.

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime soon."

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