Howzat? The clamour to legalise sports betting in India
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5 February 2016

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By Sameer Hashmi
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press reporter

It is the last over of the cricket match, with India requiring 17 runs to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

He has made more than 10 contact the last 30 minutes - not to go over the match however to keep modifying his bet.

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

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

And a couple of minutes later on his prediction comes to life, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he says with a childish glee.

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

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

'Black cash'

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

Without any legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest private run scorer.

The majority of these deals involve so-called "black money", which is cash not declared 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 restricting web gaming, there is nothing similar here.

And offshore wagering business are using this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with overseas companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend changes 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 came to light.

Two franchises have been prohibited for 2 years after some gamers and group officials were condemned of repairing parts of the match at the request of bookies.

The panel also argues that legalised wagering will generate tax profits for the exchequer that might amount to $2bn a year.
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Even gamblers feel that legalising sports betting wagering is a move in the right instructions.

"I don't mind paying some money out my revenues, as long as I can gamble publicly," states our cricket gambler.

It would likewise open a big organization opportunity for licensed bookies and global online wagering business to establish operations in India.

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

"If you work alongside wagering companies, you will have an extremely reliable method of marking out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be prohibited wagering since (some) individuals would not desire to leave an audit path by getting in the white market," states Mr Oborne.

He adds that individuals who use unaccounted money to put huge bets will never ever bet lawfully.

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

"Although many individuals are involved in some sort of sports betting - it's still a controversial issue for many," says our unnamed punter.

And given that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their area.
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"The process is so long and challenging 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 endorsed by an official panel for the very first time, at least a dispute has actually ignited around a subject - which till now was thought about a taboo.