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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 requiring 17 go to win versus Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is seeing the video 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 actually made more than 10 contact the last thirty minutes - not to talk about the match however to keep his bet.

Five minutes previously 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 modification," he tells his bookmaker on the phone.

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

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

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

Besides horse racing, sports betting of any kind is not allowed 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 is worth some $150bn a year. And much of that gambling money is directed towards cricket.

With no legal avenue, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

The majority of these deals include so-called "black money", which is cash not stated to the taxman.

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

And offshore sports betting business are using this loophole to draw Indians. Although there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore firms.

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

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

Require legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel selected by India's Supreme Court proposed the concept, saying it would assist secure down on corruption in the nation'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 came to light.

Two franchises have actually been banned for two years after some players and group authorities were found guilty of repairing 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 total up to $2bn a year.

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

"I don't mind paying some money out my earnings, as long as I can gamble publicly," states our cricket gambler.

It would also open a substantial business opportunity for licensed bookmakers and international online sports betting companies to set up operations in India.

And it would help 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 along with wagering companies, you will have an extremely efficient method of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) people would not wish to leave an audit path by entering the white market," states Mr Oborne.

He includes that people who utilize unaccounted money to put huge bets will never bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to create a brand-new law, and politically this will be a tough idea to sell.

"Even however lots of people are involved in some sort of gambling - it's still a questionable issue for lots of," states our unnamed punter.

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

"The procedure is so long and challenging that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime quickly."

Yet with the concept having actually been endorsed by a main panel for the first time, at least a dispute has sparked around a subject - which previously was considered a taboo.
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