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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 runs to win versus Australia.

In his two-bedroom house situated in main Mumbai, a middle-aged male is enjoying the game, nervously. He's resting on the edge of his grey colour sofa with his mobile phone glued to his right hand.

He has actually made more than 10 contact the last thirty minutes - not to discuss the match but to keep his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman gets ready to face 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 real, as India wins the match in a nail-biting finish.

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

For more than three decades he's been sports betting 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, prohibited wagering syndicates flourish in the country.

'Black money'

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

With no legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual 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 gambling in India, but unlike in the US which has a law prohibiting internet gaming, there is nothing comparable here.

And offshore sports betting companies are utilizing this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot people have signed up accounts with overseas firms.

"Legally you can escape [with this], as the law is ambiguous for online sports betting," says Mumbai- based legal representative HP Ranina.
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But despite this, it is "offline gambling", done through telephone call which dominate the market.

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, stating it would assist clamp down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications in the performance of India's cricket regulative 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 gamers and team authorities were discovered guilty of fixing parts of the match at the wish of bookies.

The panel also argues that legalised wagering will generate tax profits for the exchequer that might 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 cash out my profits, as long as I can bet publicly," says our cricket bettor.

It would also open a substantial company chance for licensed bookmakers and international online wagering business to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue lots of, by assisting make transactions associated with gambling more transparent.

"If you work along with wagering companies, you will have an extremely 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 bookmaker will need to be affordable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful sports betting due to the fact that (some) individuals would not wish to leave an audit trail by going into the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to position big bets will never gamble legally.
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Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to produce a new law, and politically this will be a tough concept to sell.

"Despite the fact that many individuals are included in some sort of gaming - it's still a controversial concern for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will have to also pass a separate law to legalise sports betting gambling in their territory.
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"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

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