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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 reporter

It is the last over of the cricket match, with India needing 17 go to win versus Australia.

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

He has made more than 10 hire the last 30 minutes - not to go over the match but to keep modifying his bet.

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

"I think India is winning, make the modification," he informs his bookmaker on the phone.

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

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

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

Aside from horse racing, sports betting wagering of any kind is not allowed in India. Despite that, prohibited wagering syndicates flourish in the country.

'Black cash'

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

Without any legal avenue, punters put bets utilizing their phones by making calls to bookmakers. Gamblers can bet on anything associated to the cricket match, from who is winning to the highest individual run scorer.

Most of these transactions involve so-called "black money", 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 forbiding internet gambling, there is nothing comparable here.

And overseas sports betting companies are using this loophole to draw Indians. Even though there are no online wagering operators based out of India, a lot individuals have actually registered accounts with .

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

But regardless of this, it is "offline sports betting", done through call which dominate the marketplace.

Calls for legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.
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Two franchises have actually been banned for 2 years after some gamers and team officials were found guilty of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will bring in tax earnings for the exchequer that could total up 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 revenues, as long as I can bet publicly," states our cricket gambler.

It would also open a huge business chance for licensed bookmakers and global online sports betting business to set up operations in India.

And it would help limit match repairing in cricket and other sports betting, argue numerous, by helping make transactions involved in gambling more transparent.

"If you work alongside wagering business, you will have an extremely reliable method of stamping out match repairing," states George Oborne, who runs a mock sports betting site, India Bet.
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But many likewise believe, that the taxes levied on the gambler and the bookmaker will have to be affordable to make it appealing enough for them to bet legally.

However, there are limitations.

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

He adds that people who utilize unaccounted cash to put big bets will never gamble lawfully.

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 sell.

"Although lots of people are associated with some sort of gaming - it's still a questionable concern for numerous," says 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 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 ending up being a reality anytime soon."

Yet with the concept having actually been backed by an official panel for the first time, at least a debate has actually ignited around a topic - which until now was thought about a taboo.