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 requiring 17 runs to win against Australia.

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

He has actually made more than 10 contact the last thirty 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 gets prepared to face the last over he's changed his mind.

"I believe India is winning, make the modification," he tells 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 surface.

"I have actually made $200 today," he says with a childlike glee.
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For more than 3 decades he's been wagering on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited sports betting syndicates thrive in the nation.

'Black money'

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

Without any legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And offshore sports betting business are using this loophole to entice Indians. Although there are no online sports betting operators based out of India, a lot people have actually registered accounts with offshore companies.
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"Legally you can get away [with this], as the law is uncertain for online sports betting," states Mumbai- based lawyer HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

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 .

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

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

"I do not mind paying some money out my earnings, as long as I can gamble openly," states our cricket bettor.

It would also open a big business chance for licensed bookies and worldwide online sports betting business to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue lots of, by assisting make deals involved in sports betting more transparent.

"If you work alongside sports betting companies, you will have a very reliable approach of stamping out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But many also believe, that the taxes levied on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to bet legally.

However, there are restrictions.

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

He includes that people who use unaccounted money to put huge bets will never bet legally.

Approval question

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

"Despite the fact that lots of individuals are involved in some sort of gaming - it's still a controversial concern for lots of," states our unnamed punter.

And offered 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 tricky that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the concept having been backed by an official panel for the very first time, at least a debate has fired up around a subject - which up until now was considered a taboo.
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