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 versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged guy is viewing the video game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right hand.

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

Five minutes previously his money was on Australia, however now as the Indian batsman prepares to deal with the last over he's altered his mind.

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

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

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

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

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, illegal sports betting syndicates thrive in the nation.

'Black money'

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

Without any legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest private run scorer.

The majority of these transactions include so-called "black cash", which is money not declared to the taxman.
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The 1867 Public Gambling Act bars any kind of gambling in India, but unlike in the US which has a law restricting web gaming, there is absolutely nothing similar here.

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

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

But in spite of this, it is "offline gaming", done through telephone call which control the market.

Calls for legalisation

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

The Justice RM was established to recommend changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been banned for 2 years after some players and team officials were found guilty of fixing parts of the match at the wish of bookies.

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

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

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

It would likewise open a big business chance for certified bookmakers and international online wagering business to set up operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue numerous, by assisting make transactions included in sports betting more transparent.

"If you work together with wagering business, you will have an extremely efficient method of marking out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But numerous likewise think, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it attractive enough for them to gamble legally.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) individuals wouldn't wish to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that individuals who use unaccounted money to place big bets will never gamble legally.
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Approval concern
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For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a hard concept to sell.

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable problem for numerous," states our unnamed punter.

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

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

Yet with the idea having actually been endorsed by an official panel for the first time, a minimum of an argument has sparked around a topic - which till now was considered a taboo.
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