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 needing 17 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged man is seeing 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 actually made more than 10 contact the last 30 minutes - not to talk about the match but to keep modifying his bet.

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

"I believe India is winning, make the change," he informs his bookmaker on the phone.

And a few minutes later on his prediction comes to life, as India wins the match in a nail-biting surface.

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

For more than three years he's been wagering on cricket matches. We can't reveal his name as what he's doing is illegal in India.
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Aside from horse racing, sports betting wagering 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 illegal sports betting wagering market is worth some $150bn a year. And much of that gambling money is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.
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Most of these deals include so-called "black money", which is money not to the taxman.

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

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

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

But regardless of this, it is "offline gambling", 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 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 changes 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 came to light.
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Two franchises have been prohibited for 2 years after some gamers and team officials were discovered guilty of repairing parts of the match at the behest of bookies.

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

Even gamblers feel that legalising sports betting is a move in the right direction.

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

It would also open a substantial company opportunity for certified bookies and worldwide online sports betting business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions associated with sports betting more transparent.

"If you work together with wagering companies, you will have a very reliable approach of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But lots of also believe, that the taxes imposed on the bettor and the bookie will have to be affordable to make it attractive enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful wagering since (some) people wouldn't wish to leave an audit path by entering the white market," says Mr Oborne.

He adds that people who utilize unaccounted cash to put big bets will never bet legally.

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 concept to sell.

"Even however numerous individuals are included in some sort of gambling - it's still a questionable concern for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will have to also pass a different law to legalise sports betting gambling in their territory.
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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 coming true anytime soon."

Yet with the concept having actually been backed by an official panel for the very first time, a minimum of a debate has actually sparked around a topic - which until now was thought about a taboo.