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 press reporter

It is the last over of the cricket match, with India needing 17 go to win versus Australia.

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

He has made more than 10 hire the last 30 minutes - not to go over the match but to keep revising his bet.

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

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

And a couple of minutes later his prediction comes to life, as India wins the match in a nail-biting surface.

"I have actually made $200 today," he says 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 unlawful in India.

Aside from horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful sports betting distributes thrive in the country.

'Black cash'

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

Without any legal avenue, punters put bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the highest individual run scorer.

Most of these deals involve so-called "black cash", which is cash not stated to the taxman.

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

And offshore wagering companies are using this to entice Indians. Although there are no online sports betting operators based out of India, a lot individuals have registered accounts with overseas companies.

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

But regardless of this, it is "offline gaming", done through telephone call which control 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 idea, saying it would assist clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up 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 sports betting scandal came to light.

Two franchises have been banned for two years after some players and team authorities were condemned of fixing parts of the match at the behest of bookies.

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

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

"I don't mind paying some money out my profits, as long as I can gamble openly," states our cricket gambler.

It would also open a substantial business opportunity for licensed bookmakers and international online wagering companies to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by helping make deals involved in sports betting more transparent.

"If you work alongside wagering business, you will have an extremely effective method of marking out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.
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But lots of likewise believe, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be prohibited wagering due to the fact that (some) individuals wouldn't wish to leave an audit path by getting in the white market," says Mr Oborne.

He adds that individuals who use unaccounted money to position big bets will never ever bet lawfully.

Approval question

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

"Although lots of individuals are associated with some sort of gambling - it's still a controversial problem for lots of," states our unnamed punter.

And provided that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling in their area.
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"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime quickly."

Yet with the concept having actually been backed by an official panel for the very first time, a minimum of a debate has actually sparked around a subject - which previously was thought about a taboo.
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