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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 requiring 17 runs to win versus Australia.

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

He has actually made more than 10 hire the last 30 minutes - not to discuss the match however to keep revising his bet.

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

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

And a couple of minutes later his prediction comes real, as the match in a nail-biting finish.

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

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is illegal in India.

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, unlawful sports betting distributes flourish in the country.

'Black cash'

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

With no legal opportunity, punters place bets utilizing their phones by making calls to bookies. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual 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 type of sports betting in India, however unlike in the US which has a law forbiding web sports betting, there is nothing comparable here.

And offshore sports betting business are using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot individuals have actually registered accounts with overseas firms.
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"Legally you can get away [with this], as the law is ambiguous for online gaming," states Mumbai- based lawyer HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was set up 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 wagering scandal emerged.

Two franchises have been prohibited for 2 years after some gamers and team officials were condemned of repairing parts of the match at the wish of bookies.

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

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

"I do not mind paying some money out my revenues, as long as I can gamble openly," states our cricket gambler.
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It would also open a big service opportunity for certified bookmakers and worldwide online sports betting companies to establish operations in India.

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

"If you work together with sports betting companies, you will have an extremely effective method of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But many also believe, that the taxes levied on the bettor and the bookmaker will need to be reasonable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be prohibited sports betting since (some) individuals would not wish to leave an audit path by going into the white market," states Mr Oborne.

He adds that people who utilize unaccounted money to position big bets will never bet lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be required to develop a new law, and politically this will be a tough idea to offer.

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

And offered that India has a federal structural - each state will have to also pass a separate law to legalise sports betting gambling in their area.
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"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this becoming a truth anytime quickly."

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of a debate has ignited around a subject - which until now was thought about a taboo.
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