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Howzat? The clamour to legalise sports betting in India

Published

5 February 2016

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By Sameer Hashmi
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Mumbai Business reporter

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

In his two-bedroom house located in central Mumbai, a middle-aged man is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his mobile 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, today as the Indian batsman prepares to face the last over he's altered his mind.

"I believe India is winning, make the modification," he tells his bookmaker on the phone.

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

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

For more than three decades he's been sports betting 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 allowed India. Despite that, illegal wagering distributes thrive in the country.
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'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.

With no legal avenue, punters put 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 highest specific run scorer.
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Most of these transactions involve so-called "black cash", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law restricting internet gambling, there is nothing comparable here.

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

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

But despite this, it is "offline gaming", done through call which control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest 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 actually been prohibited for 2 years after some gamers and team authorities were discovered guilty of fixing parts of the match at the behest of bookies.

The panel also argues that legalised wagering 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 relocation in the best direction.

"I don't mind paying some money out my profits, as long as I can bet openly," states our cricket bettor.

It would likewise open a big company chance for certified bookmakers and worldwide online sports betting business to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by helping make transactions included in sports betting more transparent.

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

But many likewise think, that the taxes imposed on the bettor and the bookie will have to be sensible to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal wagering because (some) individuals wouldn't wish to leave an audit path by going into the white market," says Mr Oborne.

He adds that individuals who use unaccounted cash to place huge bets will never bet legally.

Approval question

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

"Even though lots of people are included in some sort of gaming - it's still a questionable concern for lots of," says our unnamed punter.

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

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

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