Howzat? The to legalise sports betting wagering in India

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5 February 2016

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By Sameer Hashmi

Mumbai Business press reporter

It is the last over of the cricket match, with India needing 17 go to win versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is viewing the game, nervously. He's sitting on the edge of his grey colour couch with his cellphone glued to his right hand.

He has actually made more than 10 calls in the last 30 minutes - not to go over the match but to keep revising his bet.

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

"I think India is winning, make the change," he tells his bookmaker on the phone.

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

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

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

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

'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 sports betting money is directed towards cricket.
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Without any legal avenue, punters position 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 private run scorer.

The majority of these transactions involve so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any kind of sports betting in India, but unlike in the US which has a law forbiding web gambling, there is nothing similar here.

And overseas wagering companies are using this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot individuals have actually registered accounts with overseas firms.

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

But in spite of this, it is "offline gambling", done through telephone call which control the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was established to recommend changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have actually been prohibited for 2 years after some players and group authorities were found guilty of fixing parts of the match at the behest of bookies.
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The panel likewise argues that legalised sports betting will generate tax profits for the exchequer that could amount to $2bn a year.

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

"I do not mind paying some cash out my revenues, as long as I can bet openly," says our cricket bettor.

It would likewise open a substantial service opportunity for licensed bookmakers and worldwide online wagering business to establish operations in India.

And it would help restrict match repairing in cricket and other sports betting, argue lots of, by helping make deals included in sports betting more transparent.

"If you work along with wagering business, you will have a really reliable approach of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But numerous also think, that the taxes levied on the bettor and the bookie will have to be sensible to make it appealing enough for them to bet lawfully.

However, there are limitations.

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

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

Approval question

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

"Although many individuals are associated with some sort of gaming - it's still a questionable problem for lots of," says our unnamed punter.
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And considered that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their area.

"The process is so long and difficult 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 endorsed by an official panel for the very first time, a minimum of a debate has fired up around a topic - which till now was thought about a taboo.