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 needing 17 go to win against Australia.

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

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

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

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

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

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

For more than 3 years he's been sports betting on cricket matches. We can't expose his name as what he's doing is illegal in India.

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

'Black cash'

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

With no legal avenue, punters place bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions include so-called "black money", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, but unlike in the US which has a law restricting web gambling, there is nothing similar here.

And offshore wagering companies are using this loophole to draw Indians. Despite the fact that there are no online wagering operators based out of India, a lot people have actually signed up accounts with overseas companies.

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

But despite this, it is "offline gaming", done through telephone call which dominate the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest changes 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 actually been banned for 2 years after some players and group officials were discovered guilty of fixing parts of the match at the behest of bookies.

The panel also argues that legalised wagering will generate tax revenues for the exchequer that could 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 revenues, as long as I can bet openly," states our cricket bettor.

It would likewise open a big business chance for certified bookies and worldwide online sports betting companies to set up operations in India.

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

"If you work along with sports betting business, you will have a very efficient method of marking out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

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

However, there are constraints.

"Definitely there will be unlawful sports betting since (some) people would not wish to leave an audit path by going into the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted money to put big bets will never ever bet lawfully.

Approval question

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

"Even though lots of people are associated with some sort of gaming - it's still a controversial issue for many," states our unnamed punter.

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

"The procedure 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 reality anytime quickly."

Yet with the idea having actually been endorsed by a main panel for the very first time, a minimum of an argument has ignited around a subject - which previously was thought about a taboo.