Howzat? The clamour to legalise sports betting wagering 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 against Australia.

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

He has made more than 10 hire the last thirty minutes - not to talk about the match but to keep revising his bet.
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Five minutes earlier his cash was on Australia, now as the Indian batsman prepares to deal with the last over he's changed his mind.
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"I think India is winning, make the modification," he tells his bookmaker on the phone.

And a couple of minutes later on his prediction comes true, as India wins the match in a nail-biting finish.

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

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

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

'Black cash'

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 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 highest specific run scorer.

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

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

And offshore wagering companies are utilizing this loophole to entice 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 firms.

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

But despite 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 grown after a panel appointed by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to suggest 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.
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Two franchises have been banned for two years after some players and team officials were found guilty of repairing parts of the match at the behest of bookies.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some money out my earnings, as long as I can gamble publicly," states our cricket bettor.

It would likewise open a substantial organization chance for licensed bookmakers and global online sports betting companies to establish operations in India.

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

"If you work along with wagering companies, you will have an extremely reliable approach of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes levied on the gambler and the bookie will have to be affordable to make it attractive enough for them to .

However, there are limitations.

"Definitely there will be illegal wagering since (some) individuals wouldn't wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to place huge bets will never bet lawfully.

Approval concern

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

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

And given that India has a federal structural - each state will have to also pass a separate law to legalise sports betting in their territory.
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"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the idea having actually been backed by an official panel for the very first time, at least a dispute has actually ignited around a topic - which previously was thought about a taboo.