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Howzat? The clamour to legalise sports betting 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 requiring 17 runs to win versus Australia.

In his two-bedroom home located in central Mumbai, a middle-aged male is seeing the video game, nervously. He's resting on the edge of his grey colour sofa with his smart 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 previously his money was on Australia, now as the Indian batsman prepares to face the last over he's changed his mind.

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

And a couple of minutes later on his prediction becomes a reality, 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 banking on cricket matches. We can't expose his name as what he's doing is illegal in India.

Besides horse racing, sports betting 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 sports betting money is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest 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 type of gaming in India, however unlike in the US which has a law prohibiting internet gambling, there is absolutely nothing comparable here.

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

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

But in spite of this, it is "offline gaming", done through phone calls which control the market.

Require legalisation

The clamour to legalise wagering in cricket has actually grown after a panel selected by India's Supreme Court proposed the idea, stating it would assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to suggest changes in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been prohibited for 2 years after some players and team officials were condemned of fixing parts of the match at the request of bookies.

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

Even bettors feel that legalising sports betting wagering is a relocation in the right direction.

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

It would likewise open a big organization opportunity for certified bookmakers and international online wagering business to establish operations in India.

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

"If you work alongside wagering companies, you will have an extremely efficient technique of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.

But lots of also think, that the taxes levied on the bettor and the bookie will need to be reasonable to make it enough for them to gamble legally.

However, there are restrictions.

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

He includes that people who utilize unaccounted money to put big bets will never ever gamble legally.

Approval concern

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

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a controversial problem for many," states our unnamed punter.

And considered that India has a federal structural - each state will have to also pass a different law to legalise sports betting in their territory.

"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the concept having been backed by an official panel for the first time, a minimum of an argument has actually sparked around a topic - which up until now was thought about a taboo.