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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 located in main Mumbai, a middle-aged male is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his mobile phone glued to his ideal hand.

He has actually 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, now as the Indian batsman prepares to deal with the last over he's altered his mind.

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

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

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

For more than three years 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 allowed India. Despite that, prohibited sports betting distributes thrive in the country.

'Black money'

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

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

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

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

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

But regardless of this, it is "offline sports betting", done through phone calls which control the marketplace.

Calls for 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 assist clamp down on corruption in the country's preferred sport.

The Justice RM Lodha Commission was established to suggest modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been banned for 2 years after some players and group officials were discovered guilty of fixing parts of the match at the wish of bookies.

The panel also argues that legalised wagering will generate tax revenues for the exchequer that might amount to $2bn a year.

Even gamblers feel that legalising sports betting is a relocation in the right instructions.
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"I do not mind paying some money out my earnings, as long as I can gamble publicly," says our cricket bettor.

It would also open a substantial service chance for certified bookies and global online wagering companies to set up operations in India.

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

"If you work along with wagering business, you will have a very efficient technique of marking out match fixing," states George Oborne, who runs a mock sports betting site, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookie will need to be sensible to make it attractive enough for them to gamble legally.

However, there are limitations.

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

He includes that people who utilize unaccounted cash to position big bets will never ever bet legally.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a tough idea to offer.
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"Although many individuals are associated with some sort of sports betting - it's still a controversial issue for lots of," states our unnamed punter.

And given that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their .
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"The process is so long and tricky that it will take years," says Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the concept having actually been backed by a main panel for the very first time, at least a debate has actually ignited around a topic - which previously was considered a taboo.