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Howzat? The clamour to legalise sports betting in India
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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 runs to win against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged guy is seeing the video game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his man.

He has actually made more than 10 calls in the last 30 minutes - not to discuss the match but to keep revising his bet.

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

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

And a few minutes later on his forecast comes to life, as India wins the match in a nail-biting finish.

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

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

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal wagering syndicates prosper 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 utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest specific run scorer.

The majority of these transactions involve so-called "black money", which is money not declared to the taxman.

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

And overseas wagering companies are utilizing this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with overseas companies.

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

But in spite of this, it is "offline sports betting", done through telephone call which control the market.

Calls for 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 country's preferred sport.

The Justice RM Lodha Commission was set up to suggest modifications in the performance 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 team officials were condemned of repairing parts of the match at the behest 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 gamblers feel that legalising sports betting is a relocation in the best instructions.

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

It would likewise open a huge business opportunity for licensed bookmakers and worldwide online sports betting business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue lots of, by helping make transactions included in gambling more transparent.

"If you work together with wagering companies, you will have a very reliable technique of marking out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But lots of likewise think, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be unlawful sports betting due to the fact that (some) individuals wouldn't want to leave an audit trail by going into the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to position big bets will never ever gamble legally.

Approval question
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For sports betting gambling to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a tough idea to sell.

"Although lots of people are associated with some sort of sports betting - it's still a questionable concern for many," states our unnamed punter.

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

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

Yet with the concept having been backed by a main panel for the very first time, at least an argument has sparked around a subject - which previously was thought about a taboo.