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Howzat? The clamour to legalise sports betting wagering 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 runs to win against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged man is watching the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

He has made more than 10 hire the last 30 minutes - not to talk about the match but to keep revising his bet.
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Five minutes previously his money was on Australia, and now as the Indian batsman prepares to face the last over he's changed his mind.

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

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

"I have made $200 today," he says with a childlike 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 prohibited in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal wagering distributes thrive in the country.

'Black cash'

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

With no legal avenue, 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 highest run scorer.

Most of these transactions involve so-called "black money", which is money 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 restricting internet sports betting, there is nothing similar here.

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

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

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

Require legalisation

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

The Justice RM Lodha Commission was established 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 sports betting scandal emerged.

Two franchises have actually been prohibited for two years after some players and team officials were condemned of repairing parts of the match at the wish of bookmakers.

The panel also argues that legalised sports betting will bring in tax profits 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 don't mind paying some money out my profits, as long as I can gamble publicly," states our cricket bettor.

It would likewise open a substantial company opportunity for certified bookies and global online wagering companies to establish operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with sports betting more transparent.

"If you work together with wagering companies, you will have a very reliable technique of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But many also think, that the taxes imposed on the bettor and the bookmaker will need to be sensible to make it attractive enough for them to gamble lawfully.

However, there are constraints.

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

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

Approval question

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

"Although many individuals are associated with some sort of gambling - it's still a questionable issue for many," states 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 becoming a reality anytime soon."

Yet with the idea having been backed by a main panel for the very first time, at least a dispute has sparked around a topic - which previously was thought about a taboo.