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

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

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

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

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

And a couple of minutes later on his forecast becomes a reality, as India wins the match in a nail-biting surface.

"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 unlawful in India.

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

'Black money'

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

Without any legal opportunity, punters position bets utilizing 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 cash 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 web gaming, there is absolutely nothing comparable here.

And overseas wagering companies are utilizing this loophole to tempt Indians. Although there are no online wagering operators based out of India, a lot people have signed up accounts with offshore companies.

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

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

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend 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 wagering scandal emerged.

Two franchises have been prohibited for two years after some gamers and group authorities were condemned of fixing parts of the match at the request of bookmakers.

The panel likewise 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 is a move in the ideal direction.

"I do not mind paying some cash out my revenues, as long as I can bet openly," states our cricket bettor.

It would also open a big organization opportunity for certified bookmakers and global online wagering business to set up operations in India.
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And it would assist limit match repairing in cricket and other sports betting, argue lots of, by assisting make transactions included in sports betting more transparent.

"If you work alongside sports betting business, you will have an extremely efficient method of marking out match repairing," says George Oborne, who runs a mock wagering site, India Bet.
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But numerous likewise think, that the taxes imposed on the gambler and the bookie will have to be sensible to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be prohibited wagering because (some) people wouldn't want to leave an audit trail by entering the white market," states Mr Oborne.

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

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a hard concept to offer.

"Despite the fact that lots of people are included in some sort of gaming - it's still a questionable issue for many," says our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a separate law to sports betting in their area.
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"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this becoming a reality anytime quickly."

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