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

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By Sameer Hashmi

Mumbai Business reporter

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

In his two-bedroom house located in main Mumbai, a middle-aged man is watching the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has made more than 10 contact 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 yourself to face the last over he's changed his mind.

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

And a few minutes later his prediction becomes a reality, as India wins the match in a nail-biting finish.

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

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, illegal wagering syndicates prosper in the nation.

'Black money'

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

With no legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

The 1867 Public Gambling Act bars any sort of gaming in India, however unlike in the US which has a law prohibiting internet gambling, there is nothing similar here.

And overseas sports betting business are using 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 offshore firms.

"Legally you can escape [with this], as the law is unclear for online gambling," states Mumbai- based attorney HP Ranina.

But despite this, it is "offline sports betting", done through phone calls which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established 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 banned for two years after some players and group officials were found guilty of fixing parts of the match at the wish of bookmakers.

The panel also argues that legalised sports betting will generate tax for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some cash out my revenues, as long as I can gamble openly," states our cricket bettor.

It would also open a big organization opportunity for certified bookmakers and worldwide online sports betting business to establish operations in India.

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

"If you work along with wagering business, you will have an extremely effective method of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But many likewise think, that the taxes imposed on the bettor and the bookie will need to be reasonable to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be illegal wagering because (some) people would not want to leave an audit path by getting in the white market," states Mr Oborne.

He adds that people who utilize unaccounted cash to position huge bets will never ever bet lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a difficult idea to sell.

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

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

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

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