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

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

In his two-bedroom house located in main Mumbai, a middle-aged guy is viewing the game, nervously. He's resting on the edge of his grey colour couch with his smart phone glued to his right-hand man.
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He has actually made more than 10 employ the last thirty minutes - not to talk about the match but to keep revising his bet.

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

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

And a few minutes later on 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 3 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 of any kind is not permitted in India. Despite that, illegal sports betting syndicates prosper in the country.

'Black cash'

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

Without any legal avenue, punters position bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the highest private run scorer.

The majority of these deals involve so-called "black cash", which is money not declared 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 internet sports betting, there is absolutely nothing comparable here.

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

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

But in spite of this, it is "offline gambling", done through call which control the marketplace.

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, stating it would help secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest changes in the performance of India's cricket regulatory 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 bookmakers.

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

Even gamblers feel that legalising sports betting is a move in the right direction.

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

It would also open a big business opportunity for licensed bookies and international online companies to establish operations in India.

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

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

But numerous also think, that the taxes imposed on the gambler and the bookie will need to be sensible to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) individuals wouldn't desire to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to put huge bets will never ever gamble lawfully.

Approval question

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

"Even however lots of people are associated with some sort of gambling - it's still a controversial concern for numerous," states our unnamed punter.

And considered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their area.

"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 idea having actually been endorsed by an official panel for the first time, at least a debate has sparked around a topic - which previously was thought about a taboo.