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 needing 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 sofa with his mobile phone glued to his right hand.

He has actually made more than 10 calls in the last 30 minutes - not to go over the match however to keep modifying his bet.

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

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

And a few minutes later his prediction comes true, as India wins the match in a nail-biting surface.

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

For more than three decades he's been banking 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, illegal wagering syndicates grow in the country.

'Black cash'

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

Without any legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet 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 money", which is money not declared to the taxman.

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

And overseas 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 people have actually registered accounts with offshore firms.

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

But in spite of this, it is "offline gaming", done through 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 idea, saying it would help clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established to suggest modifications in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting emerged.

Two franchises have actually been prohibited for two years after some players and group authorities were discovered guilty of fixing parts of the match at the wish of bookies.

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

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

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

It would likewise open a substantial company opportunity for licensed bookies and global online sports betting business to establish operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue numerous, by assisting make deals included in gambling more transparent.

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

But many also believe, that the taxes imposed on the gambler and the bookmaker will need to be affordable to make it appealing enough for them to bet lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering because (some) people wouldn't want to leave an audit path by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to position huge bets will never gamble legally.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a difficult concept to offer.

"Although numerous individuals are involved in some sort of gambling - it's still a questionable issue for lots of," says our unnamed punter.

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

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