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 needing 17 runs to win versus Australia.

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

He has made more than 10 contact 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 to deal with the last over he's changed his mind.

"I believe India is winning, make the modification," he tells his bookie on the phone.

And a couple of minutes later his forecast comes to life, as India wins the match in a nail-biting finish.

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

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

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

'Black cash'

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

Without any legal opportunity, punters put bets using their phones by making calls to bookmakers. Gamblers can bet on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

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

And offshore sports betting companies are utilizing this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot people have registered accounts with offshore firms.

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

But in spite of this, it is "offline sports betting", done through phone calls which dominate the marketplace.

Require legalisation

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

The Justice RM Lodha Commission was established 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 prohibited for 2 years after some players and team authorities were condemned of fixing parts of the match at the behest of bookmakers.

The panel also argues that legalised wagering will bring in tax incomes for the exchequer that could total up to $2bn a year.

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

"I do not mind paying some money out my profits, as long as I can bet openly," says our cricket bettor.

It would likewise open a substantial company opportunity for licensed bookies and global online sports betting companies to establish operations in India.

And it would assist restrict match repairing in cricket and other sports betting, argue lots of, by assisting make transactions involved in sports betting more transparent.

"If you work alongside wagering companies, you will have a really effective method of stamping out match repairing," states George Oborne, who runs a mock wagering site, India Bet.

But numerous likewise believe, that the taxes imposed on the bettor and the bookie will have to be sensible to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful sports betting since (some) people would not want to leave an audit trail by getting in the white market," states Mr Oborne.

He includes that individuals who utilize unaccounted money to place huge bets will never ever gamble lawfully.

Approval concern

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

"Although lots of people are associated with some sort of gambling - it's still a controversial concern for many," says our unnamed punter.

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

"The process is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this coming true anytime soon."

Yet with the concept having actually been backed by a main panel for the very first time, at least an argument has fired up around a subject - which previously was thought about a taboo.