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Howzat? The clamour to legalise sports betting wagering in India

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 runs to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged man is viewing the game, nervously. He's resting on the edge of his grey colour couch with his glued to his right hand.
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He has made more than 10 employ the last thirty minutes - not to discuss the match but to keep revising his bet.

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

"I believe India is winning, make the modification," he tells his bookie on the phone.

And a few minutes later his forecast becomes a reality, as India wins the match in a nail-biting finish.

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

For more than 3 decades he's been wagering 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 enabled in India. Despite that, prohibited sports betting distributes thrive in the nation.

'Black money'

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 cash is directed towards cricket.

Without any legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

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

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

And overseas wagering companies are utilizing this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, saying it would assist clamp down on corruption in the country's favourite sport.
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The Justice RM Lodha Commission was established to recommend changes 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 been banned for 2 years after some gamers and group officials were condemned of fixing parts of the match at the request of bookies.

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

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

"I do not mind paying some money out my profits, as long as I can bet publicly," says our cricket bettor.

It would likewise open a big organization chance for licensed bookmakers and international online sports betting business to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue many, by assisting make deals associated with gambling more transparent.

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

But numerous also believe, that the taxes levied on the gambler and the bookmaker will need to be sensible to make it attractive enough for them to gamble legally.
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However, there are limitations.

"Definitely there will be prohibited sports betting due to the fact that (some) individuals wouldn't want to leave an audit path by entering the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted money to place big bets will never gamble legally.

Approval question

For sports betting to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a hard concept to offer.

"Even though numerous individuals are included in some sort of gaming - it's still a controversial problem for many," states our unnamed punter.
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And considered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their area.
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"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime soon."

Yet with the concept having been endorsed by an official panel for the first time, at least a debate has ignited around a subject - which previously was thought about a taboo.
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