1 For Sports Gambling to Be Legalised
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Howzat? The clamour to legalise sports betting wagering in India

Published

5 February 2016

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By Sameer Hashmi
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Mumbai Business press reporter

It is the last over of the cricket match, with India requiring 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 sofa with his mobile phone glued to his right-hand man.
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He has made more than 10 calls in the last thirty minutes - not to discuss the match but 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 modification," he informs his bookmaker on the phone.

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

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

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

Besides horse racing, sports betting of any kind is not allowed India. Despite that, unlawful wagering syndicates prosper in the country.

'Black cash'

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

Without any legal avenue, punters put 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 highest private run scorer.

Most of these deals involve so-called "black cash", which is cash not declared to the taxman.

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

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

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

But in spite of this, it is "offline gambling", done through telephone call which control the marketplace.

Calls for legalisation
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The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, saying it would help secure down on corruption in the country's favourite sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been prohibited for two years after some gamers and group officials were discovered 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 bettors feel that legalising sports betting is a move in the ideal direction.

"I don't mind paying some money out my revenues, as long as I can gamble openly," says our cricket gambler.

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

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by assisting make deals involved in more transparent.

"If you work alongside wagering companies, you will have a very effective approach of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.
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But lots of likewise believe, that the taxes imposed on the gambler and the bookmaker will have to be reasonable to make it appealing enough for them to bet lawfully.

However, there are constraints.

"Definitely there will be illegal sports betting because (some) people would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He includes that people who use unaccounted cash to position big bets will never gamble legally.

Approval concern

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

"Although many individuals are included in some sort of gambling - it's still a controversial problem for lots of," states our unnamed punter.

And offered that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting gambling in their area.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are cynical about this ending up being a truth anytime quickly."

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