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 reporter

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

In his two-bedroom home situated in main Mumbai, a middle-aged man is seeing the game, nervously. He's resting on the edge of his grey colour sofa with his cellphone glued to his right hand.

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

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

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

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

"I have made $200 today," he says with a childlike glee.

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

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

'Black cash'

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Act bars any sort of sports betting in India, but unlike in the US which has a law prohibiting internet gambling, there is absolutely nothing similar here.

And overseas wagering companies are using this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have registered accounts with overseas firms.

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications 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 came to light.

Two franchises have been banned for two years after some players and team officials were condemned of fixing parts of the match at the wish of bookmakers.

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

Even bettors feel that legalising sports betting is a relocation in the right instructions.
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"I do not mind paying some money out my revenues, as long as I can bet openly," states our cricket gambler.

It would likewise open a huge service chance for licensed bookmakers and international online sports betting companies to establish operations in India.
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And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by helping make deals involved in sports betting more transparent.

"If you work along with wagering business, you will have an extremely efficient method of stamping out match fixing," says 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 have to be affordable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be illegal wagering due to the fact that (some) people would not wish to leave an audit trail by getting in the white market," states Mr Oborne.

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

Approval question

For sports betting to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a tough idea to sell.

"Even however many individuals are included in some sort of sports betting - it's still a questionable problem for numerous," says our unnamed punter.

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

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

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