Howzat? The clamour to legalise sports betting wagering in India

Published

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 against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged man is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his right hand.

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

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

"I believe India is winning, make the change," he tells his bookmaker on the phone.

And a few minutes later his prediction becomes a reality, as India wins the match in a nail-biting surface.

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

For more than three decades he's been sports betting on cricket matches. We can't reveal his name as what he's doing is prohibited in India.

Aside from horse racing, sports betting wagering of any kind is not enabled in India. Despite that, illegal wagering syndicates thrive in the country.

'Black money'

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

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can wager on anything related to the cricket match, from who is winning to the greatest specific run scorer.

The majority of these deals involve so-called "black cash", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law prohibiting web gaming, there is absolutely nothing comparable here.

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

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

But regardless of this, it is "offline gambling", done through phone calls which control the market.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed 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 suggest 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 sports betting scandal came to light.

Two franchises have actually been banned for two years after some players and group officials were condemned of repairing parts of the match at the request of bookmakers.

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

Even gamblers feel that legalising sports betting is a relocation in the ideal instructions.

"I don't mind paying some cash out my revenues, as long as I can bet openly," states our cricket gambler.

It would likewise open a huge company chance for certified bookies and global online wagering companies to establish operations in India.

And it would help limit match fixing in cricket and other sports betting, argue many, by assisting make transactions included in gambling more transparent.

"If you work together with wagering companies, you will have a really effective technique of stamping out match fixing," says George Oborne, who runs a mock sports betting site, India Bet.

But many also believe, that the taxes levied on the gambler and the bookie will have to be sensible to make it attractive enough for them to bet legally.

However, there are limitations.

"Definitely there will be unlawful wagering since (some) individuals would not wish to leave an audit path by getting in the white market," states Mr Oborne.

He adds that individuals who use unaccounted money to put huge bets will never bet lawfully.

Approval question

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

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

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

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

Yet with the idea having actually been endorsed by a main panel for the very first time, at least a dispute has actually fired up around a topic - which up until now was thought about a taboo.