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Howzat? The clamour to legalise sports betting in India

5 February 2016

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 located in central Mumbai, a middle-aged guy is enjoying the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right-hand man.

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

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

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

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

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

For more than 3 decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is illegal in India.

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

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

Without any legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

Most of these deals involve so-called "black money", which is money not stated to the taxman.

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

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

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

But regardless of this, it is "offline gambling", done through call which control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.
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Two franchises have actually been prohibited for 2 years after some players and team authorities were discovered guilty of repairing parts of the match at the wish of bookies.

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

Even bettors feel that legalising sports betting wagering is a move in the best instructions.

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

It would also open a substantial company chance for licensed bookmakers and worldwide online sports betting business to establish operations in India.

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

"If you work alongside sports betting companies, you will have a very efficient method of stamping out match fixing," states George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise believe, that the taxes imposed on the bettor and the bookie will need to be sensible to make it attractive enough for them to gamble lawfully.

However, there are restrictions.

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

He includes that individuals who utilize unaccounted cash to position huge bets will never ever gamble 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 concept to sell.

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

And considered that India has a federal structural - each state will need to also pass a different law to legalise sports betting gambling in their area.

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

Yet with the concept having been endorsed by an official panel for the very first time, a minimum of a debate has actually ignited around a subject - which till now was considered a taboo.