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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 press reporter

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

In his two-bedroom house situated in main Mumbai, a middle-aged man is viewing the video game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right-hand man.

He has made more than 10 hire the last thirty minutes - not to go over the match however to keep modifying his bet.

Five minutes previously his money was on Australia, but now as the Indian batsman gets ready 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 his prediction comes real, as India wins the match in a nail-biting finish.

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

For more than 3 years he's been sports betting on cricket matches. We can't expose his name as what he's doing is unlawful in India.

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

'Black money'

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

Without any legal opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these transactions include so-called "black money", which is money not stated to the taxman.
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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 similar here.

And offshore wagering companies are utilizing this loophole to entice Indians. Despite the fact that there are no online sports betting operators based out of India, a lot people have signed up accounts with overseas firms.

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

But regardless of this, it is "offline gambling", done through phone calls which dominate the market.

Calls for legalisation

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

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

Two franchises have actually been prohibited for 2 years after some gamers and group authorities were condemned of fixing parts of the match at the behest of bookies.
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The panel likewise argues that legalised wagering will bring in tax earnings for the exchequer that might total up to $2bn a year.

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

"I don't mind paying some cash out my earnings, as long as I can bet publicly," states our cricket bettor.

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

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

"If you work alongside sports betting business, you will have an extremely efficient technique of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes imposed on the bettor and the bookie will need to be sensible to make it appealing enough for them to gamble legally.

However, there are constraints.

"Definitely there will be unlawful wagering because (some) people would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to put huge bets will never gamble lawfully.

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.

"Although lots of people are included in some sort of sports betting - it's still a controversial issue for lots of," states our unnamed punter.

And given that India has a federal structural - each state will need to also pass a separate law to legalise sports betting gambling in their territory.
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"The process is so long and difficult 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 been backed by a main panel for the very first time, at least a debate has actually ignited around a topic - which until now was thought about a taboo.
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