Howzat? The clamour to legalise sports betting in India

Published

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 situated in central Mumbai, a middle-aged man is watching the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his best hand.

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

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

"I think India is winning, make the change," he tells his bookie 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 made $200 today," he states with a childlike glee.

For more than 3 years he's been banking on cricket matches. We can't reveal 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, illegal wagering syndicates flourish in the nation.

'Black money'

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 gambling money is directed towards cricket.

Without any legal avenue, punters position bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest private run scorer.

Most of these transactions involve so-called "black cash", which is cash 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 restricting internet gaming, there is absolutely nothing comparable here.

And offshore sports betting companies are utilizing this loophole to entice Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have actually signed up accounts with offshore firms.

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

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

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, saying it would help clamp 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 regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal came to light.

Two franchises have been banned for 2 years after some players and group authorities were condemned of fixing parts of the match at the behest of bookies.

The panel likewise argues that legalised sports betting will bring in tax incomes for the exchequer that might total up to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a relocation in the best direction.

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

It would likewise open a huge organization opportunity for licensed bookies and worldwide online wagering business to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue many, by assisting make deals associated with gambling more transparent.

"If you work alongside wagering business, you will have a really reliable technique of marking out match fixing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous also think, that the taxes imposed on the gambler and the bookie will have to be reasonable to make it appealing enough for them to gamble legally.

However, there are limitations.

"Definitely there will be illegal sports betting since (some) individuals would not desire to leave an audit trail by going into the white market," says Mr Oborne.

He adds that people who use unaccounted money to put big bets will never bet lawfully.

Approval concern

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

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

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

"The procedure is so long and tricky 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 an official panel for the very first time, at least a debate has actually ignited around a topic - which until now was considered a taboo.