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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 requiring 17 runs to win against Australia.

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

He has made more than 10 contact the last thirty minutes - not to discuss the match but to keep modifying his bet.

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

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

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

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

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

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

'Black cash'

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

With no legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest specific run scorer.

Most of these deals involve so-called "black money", which is money not stated to the taxman.
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The 1867 Act bars any sort of sports betting in India, but unlike in the US which has a law prohibiting web gaming, there is nothing similar here.

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

"Legally you can escape [with this], as the law is ambiguous for online sports betting," states Mumbai- based lawyer HP Ranina.

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

Calls for legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, stating it would help clamp down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was established 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 two years after some players and group officials were condemned of fixing parts of the match at the wish of bookmakers.

The panel also argues that legalised wagering will bring in tax profits for the exchequer that might total up to $2bn a year.

Even bettors feel that legalising sports betting is a relocation in the ideal direction.

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

It would likewise open a substantial organization chance for certified bookmakers and worldwide online wagering companies to establish operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue lots of, by helping make transactions included in sports betting more transparent.
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"If you work alongside wagering companies, you will have a really reliable method of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookmaker will have to be affordable to make it attractive enough for them to gamble legally.

However, there are limitations.

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

He adds that people who use unaccounted money to place big bets will never gamble lawfully.

Approval concern

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

"Even however lots of people are associated with some sort of gambling - it's still a questionable concern for lots of," says our unnamed punter.

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

Yet with the concept having been backed by a main panel for the very first time, a minimum of a debate has sparked around a subject - which previously was considered a taboo.