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

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

He has actually made more than 10 calls in the last 30 minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his cash was on Australia, but now as the Indian batsman gets all set to deal with the last over he's changed his mind.

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

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

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

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

Besides horse racing, sports betting of any kind is not enabled in India. Despite that, unlawful sports betting syndicates grow 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 gambling money is directed towards cricket.

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

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

The 1867 Public Gambling Act bars any sort of gambling in India, however unlike in the US which has a law restricting web gaming, there is nothing similar here.

And overseas wagering business are using this loophole to lure Indians. Although there are no online sports betting operators based out of India, a lot individuals have actually signed up accounts with offshore firms.

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

But regardless of this, it is "offline sports betting", done through phone calls which the marketplace.

Calls for legalisation

The clamour to legalise wagering in cricket has grown after a panel appointed by India's Supreme Court proposed the idea, stating it would assist clamp down on corruption in the nation's favourite sport.
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The Justice RM Lodha Commission was established to recommend changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have actually been banned for 2 years after some players and team officials were condemned of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised sports betting will bring in tax incomes for the exchequer that might total up to $2bn a year.

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

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

It would also open a huge business opportunity for licensed bookies and global online wagering business to establish operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by helping make deals included in sports betting more transparent.

"If you work together with sports betting companies, you will have a very effective technique of marking out match fixing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also think, that the taxes levied on the bettor and the bookmaker will have to be reasonable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) people wouldn't desire to leave an audit path by going into the white market," states Mr Oborne.
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He includes that individuals who use unaccounted cash to position big bets will never bet legally.

Approval concern

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

"Although many individuals are associated with some sort of gambling - it's still a controversial concern for numerous," says our unnamed punter.

And offered that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their territory.

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a reality anytime soon."

Yet with the idea having been backed by a main panel for the first time, a minimum of a dispute has fired up around a subject - which previously was considered a taboo.