Howzat? The clamour to legalise sports betting in India

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5 February 2016

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By Sameer Hashmi

Mumbai Business reporter
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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 man is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his right-hand man.

He has actually made more than 10 calls in the last thirty minutes - not to go over the match however to keep revising his bet.

Five minutes earlier his cash was on Australia, and now as the Indian batsman prepares yourself to deal with the last over he's changed his mind.
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"I believe India is winning, make the change," he informs his bookmaker 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 3 years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Other than horse racing, sports betting wagering of any kind is not enabled in India. Despite that, unlawful wagering distributes grow in the nation.

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

Without any legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the highest specific run scorer.

The majority of these transactions involve so-called "black cash", which is money not to the taxman.

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

And offshore sports betting business are using this loophole to draw Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

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

But regardless of this, it is "offline sports betting", done through telephone call which dominate the market.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been prohibited for 2 years after some gamers and group authorities were discovered guilty of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised wagering will generate tax revenues 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 cash out my profits, as long as I can gamble publicly," says our cricket bettor.

It would likewise open a huge company opportunity for licensed bookmakers and global online wagering companies to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue numerous, by helping make transactions involved in gambling more transparent.

"If you work together with wagering companies, you will have a very reliable technique of marking out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But many likewise think, that the taxes levied on the bettor and the bookie will need to be affordable to make it attractive enough for them to bet lawfully.

However, there are limitations.

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

He adds that people who utilize unaccounted money to place big bets will never bet legally.

Approval concern
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For sports betting gambling to be legalised, parliamentary approval will be needed to produce a brand-new law, and politically this will be a difficult idea to offer.

"Despite the fact that lots of individuals are involved in some sort of sports betting - it's still a questionable concern for many," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a separate law to legalise sports betting in their area.
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"The procedure is so long and tricky that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the idea having actually been backed by an official panel for the first time, a minimum of a dispute has fired up around a topic - which till now was thought about a taboo.