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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 needing 17 go to win against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged male is enjoying the game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right hand.

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

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

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

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

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

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

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited wagering syndicates prosper 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 opportunity, punters place bets using their phones by making calls to bookmakers. Gamblers can wager on anything related to the cricket match, from who is winning to the highest specific run scorer.

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

The 1867 Public Gambling Act bars any kind of sports betting in India, however unlike in the US which has a law prohibiting internet sports betting, there is absolutely nothing similar here.

And offshore wagering companies are utilizing this loophole to entice Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with overseas firms.

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

But in spite of this, it is "offline gaming", done through call which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was to recommend modifications in the performance 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 two years after some players and team authorities were found guilty of fixing parts of the match at the wish of bookies.

The panel also argues that legalised sports betting will bring in tax revenues for the exchequer that could amount to $2bn a year.

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

"I don't mind paying some cash out my revenues, as long as I can gamble publicly," states our cricket bettor.

It would likewise open a huge business opportunity for certified bookies and global online wagering business to set up operations in India.

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

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

But lots of also believe, that the taxes levied on the gambler and the bookmaker will have to be sensible to make it appealing enough for them to bet lawfully.

However, there are constraints.

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

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

Approval concern

For sports betting to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a difficult idea to offer.

"Despite the fact that many individuals are included in some sort of sports betting - it's still a controversial issue for numerous," says our unnamed punter.

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

Yet with the idea having actually been endorsed by a main panel for the very first time, at least a dispute has actually fired up around a topic - which previously was considered a taboo.