Howzat? The clamour to legalise sports betting wagering 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 located in main Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his smart phone glued to his right-hand man.

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

Five minutes earlier his money was on Australia, but now as the Indian batsman gets prepared to face the last over he's changed his mind.

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

And a few minutes later on his prediction comes real, as India wins the match in a nail-biting surface.

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

For more than three 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, prohibited wagering syndicates grow in the nation.

'Black cash'

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

With no legal avenue, punters place bets using their phones by making calls to bookies. Gamblers can bet on anything related to the cricket match, from who is winning to the greatest private run scorer.

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

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

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

"Legally you can escape [with this], as the law is uncertain for online sports betting," says Mumbai- based attorney HP Ranina.

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

Require legalisation

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

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

Two franchises have been banned for two years after some players and group authorities were discovered guilty of fixing parts of the match at the wish 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 ideal instructions.

"I do not mind paying some cash out my revenues, as long as I can bet publicly," says our cricket gambler.

It would likewise open a huge organization chance for licensed bookmakers and global online wagering business to establish operations in India.

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

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

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

However, there are restrictions.

"Definitely there will be illegal wagering due to the fact that (some) people would not want to leave an audit trail by going into the white market," says Mr Oborne.

He includes that individuals who use unaccounted money to place huge bets will never ever bet legally.

Approval concern

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

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

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

"The procedure is so long and challenging 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 idea having actually been endorsed by a main panel for the very first time, at least an argument has sparked around a subject - which previously was thought about a taboo.