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

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

In his two-bedroom house situated in central Mumbai, a middle-aged guy is seeing the video game, nervously. He's resting on the edge of his grey colour couch with his cellphone glued to his ideal hand.

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

Five minutes earlier his cash was on Australia, but now as the Indian batsman prepares to face the last over he's altered his mind.

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

And a couple of minutes later his forecast 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 banking on cricket matches. We can't expose his name as what he's doing is unlawful in India.

Besides horse racing, sports betting of any kind is not allowed in India. Despite that, prohibited wagering distributes flourish in the country.

'Black cash'

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

With no legal avenue, punters place bets utilizing 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.

The majority of these transactions include so-called "black money", which is cash not declared to the taxman.

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

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

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

But despite this, it is "offline sports betting", done through telephone call which dominate the marketplace.

Require legalisation
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The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the idea, saying it would help clamp down on in the country's preferred sport.

The Justice RM Lodha Commission was set up to suggest modifications in the functioning 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.

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

The panel likewise argues that legalised wagering will bring in tax earnings for the exchequer that might amount to $2bn a year.

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

"I don't mind paying some money out my revenues, as long as I can bet publicly," says our cricket bettor.

It would also open a huge company opportunity for certified bookies and international online wagering companies to establish operations in India.
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And it would help limit match repairing in cricket and other sports betting, argue many, by helping make transactions included in sports betting more transparent.
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"If you work together with sports betting business, you will have a very reliable method of marking out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous also think, that the taxes levied on the gambler and the bookmaker will need to be sensible to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

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

He adds that individuals who utilize unaccounted money to position huge bets will never bet legally.

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 idea to offer.

"Although many individuals are involved in some sort of sports betting - it's still a controversial issue for many," says our unnamed punter.

And given that India has a federal structural - each state will need to likewise pass a separate law to legalise sports betting in their area.

"The process is so long and tricky that it will take years," states Mr Ranina."That's why, we are cynical about this becoming a truth anytime soon."

Yet with the concept having actually been backed by a main panel for the very first time, a minimum of an argument has actually ignited around a topic - which previously was thought about a taboo.
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