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Howzat? The clamour to legalise sports betting wagering in India

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bet9ja.com
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 against Australia.

In his two-bedroom house located in main Mumbai, a middle-aged man is seeing the game, nervously. He's sitting on the edge of his grey colour sofa with his glued to his right hand.

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

Five minutes previously his cash was on Australia, however now as the Indian batsman gets ready to deal with the last over he's altered his mind.

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

And a few minutes later 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 three years he's been banking on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering syndicates thrive in the nation.

'Black cash'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

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

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

And offshore wagering companies are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore companies.

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

But despite this, it is "offline gambling", done through call which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest modifications in the functioning 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 been banned for 2 years after some players and team officials were condemned of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised wagering will generate tax profits for the exchequer that could amount to $2bn a year.

Even bettors feel that legalising sports betting wagering is a move in the ideal direction.

"I don't mind paying some money out my profits, as long as I can bet publicly," states our cricket bettor.

It would also open a huge business opportunity for licensed bookies and global online sports betting companies to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by assisting make transactions included in sports betting more transparent.

"If you work along with wagering companies, you will have a very reliable method of marking out match repairing," says George Oborne, who runs a mock sports betting website, 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 bet lawfully.

However, there are limitations.

"Definitely there will be prohibited wagering because (some) individuals would not desire to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that individuals who use unaccounted cash to place big bets will never ever bet legally.

Approval question

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

"Although lots of people are associated with some sort of gambling - it's still a controversial issue for numerous," states our unnamed punter.

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

Yet with the concept having actually been endorsed by a main panel for the very first time, a minimum of a debate has actually sparked around a subject - which till now was considered a taboo.