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 reporter

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

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

He has actually made more than 10 contact the last thirty minutes - not to discuss the match but to keep modifying his bet.

Five minutes previously his cash was on Australia, however now as the Indian batsman prepares to deal with 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 couple of minutes later on his forecast comes real, as India wins the match in a nail-biting surface.

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

For more than three years he's been banking on cricket matches. We can't expose his name as what he's doing is illegal in India.

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

'Black cash'

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 greatest individual run scorer.

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

The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law forbiding web gambling, there is nothing similar here.

And overseas wagering companies are using this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas companies.

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

But regardless of this, it is "offline gambling", done through telephone call which control the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend modifications in the performance of India's cricket regulatory 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 players and group officials were condemned of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax incomes for the exchequer that might total up to $2bn a year.

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

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

It would also open a substantial organization opportunity for licensed bookies and global online sports betting companies to establish operations in India.

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

"If you work along with wagering companies, you will have a really efficient method of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But numerous likewise believe, that the taxes levied on the and the bookie will have to be sensible to make it attractive enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be unlawful wagering since (some) individuals would not wish to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted money to position big bets will never gamble lawfully.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a hard concept to sell.

"Although numerous individuals are involved in some sort of gaming - it's still a questionable concern for lots of," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting in their area.
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"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are negative about this ending up being a reality anytime quickly."

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