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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 needing 17 go to win versus Australia.

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

He has actually made more than 10 calls in the last thirty minutes - not to talk about the match but to keep revising his bet.

Five minutes previously his cash was on Australia, and now as the Indian batsman gets ready to face the last over he's altered his mind.

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

And a few minutes later his forecast comes to life, as India wins the match in a nail-biting surface.

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

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

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited wagering syndicates grow in the nation.

'Black money'

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 money is directed towards cricket.

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

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

The 1867 Public Gambling Act bars any type of gambling in India, however unlike in the US which has a web sports betting, there is absolutely nothing similar here.

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

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

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

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, saying it would assist clamp down on corruption in the nation's favourite 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 sports betting scandal emerged.

Two franchises have been banned for 2 years after some players and group authorities were found guilty of fixing parts of the match at the behest of bookmakers.

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

Even gamblers feel that legalising sports betting is a relocation in the best instructions.

"I do not mind paying some money out my earnings, as long as I can gamble publicly," says our cricket gambler.

It would likewise open a substantial company chance for licensed bookmakers and worldwide online sports betting companies to set up operations in India.

And it would assist limit match fixing in cricket and other sports betting, argue lots of, by helping make transactions involved in sports betting more transparent.

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

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

However, there are limitations.

"Definitely there will be prohibited sports betting due to the fact that (some) people would not wish to leave an audit path by getting in the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to place big bets will never ever gamble legally.

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to develop a brand-new law, and politically this will be a hard concept to sell.

"Despite the fact that lots of people are included in some sort of sports betting - it's still a questionable issue for many," states our unnamed punter.

And given that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their area.
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"The process is so long and difficult that it will take years," states Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the concept having actually been endorsed by an official panel for the first time, at least a debate has fired up around a topic - which until now was considered a taboo.