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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 home situated in central Mumbai, a middle-aged man is viewing the video game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right hand.

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

Five minutes earlier his cash was on Australia, and 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 bookmaker on the phone.
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And a few minutes later on his forecast 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 banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Other than horse racing, sports betting wagering of any kind is not enabled in India. Despite that, prohibited sports betting syndicates thrive in the nation.

'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 position 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 specific run scorer.

The majority of these transactions include so-called "black cash", which is cash not declared to the taxman.

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

And offshore sports betting business are utilizing this loophole to lure Indians. Even though there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas firms.

"Legally you can get away [with this], as the law is uncertain for online gambling," states Mumbai- based attorney HP Ranina.

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

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the idea, stating it would help clamp down on in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest 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 prohibited for 2 years after some gamers and team officials were condemned of fixing parts of the match at the behest of bookies.

The panel likewise argues that legalised wagering will bring in tax revenues 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.
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"I do not mind paying some money out my profits, as long as I can bet publicly," states our cricket gambler.

It would also open a substantial organization opportunity for licensed bookmakers and global online wagering business to set up operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by helping make deals associated with sports betting more transparent.

"If you work along with sports betting business, you will have a very effective technique of stamping out match repairing," says George Oborne, who runs a mock sports betting site, India Bet.

But many likewise believe, that the taxes imposed on the bettor and the bookie will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be illegal wagering since (some) people would not wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that people who use unaccounted cash to put huge bets will never ever gamble legally.

Approval question

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

"Despite the fact that lots of people are involved in some sort of gambling - it's still a controversial problem for lots of," says our unnamed punter.

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

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this becoming a truth anytime quickly."

Yet with the concept having been backed by a main panel for the very first time, at least an argument has ignited around a topic - which previously was considered a taboo.
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