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 runs to win against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged guy is watching the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his best hand.

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

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

"I think India is winning, make the modification," he informs his bookmaker on the phone.
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And a few minutes later his forecast comes real, as India wins the match in a nail-biting surface.

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

For more than three decades 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 in India. Despite that, illegal sports betting distributes thrive in the nation.

'Black cash'

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

With no legal opportunity, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And overseas sports betting business are utilizing this loophole to entice Indians. Although there are no online wagering operators based out of India, a lot people have signed up accounts with overseas firms.

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

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the country's favourite sport.

The Lodha Commission was set up to suggest modifications in the functioning of India's cricket regulative 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 gamers and team authorities were condemned of fixing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the best instructions.

"I do not mind paying some cash out my revenues, as long as I can gamble openly," says our cricket bettor.

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

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

"If you work together with sports betting business, you will have a very efficient method of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookie will have to be affordable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal wagering since (some) individuals would not desire to leave an audit trail by entering the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted cash to put huge bets will never bet legally.

Approval question

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

"Even though many individuals are associated with some sort of sports betting - it's still a controversial problem for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting gambling in their territory.
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"The procedure is so long and challenging 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 dispute has fired up around a topic - which previously was considered a taboo.