Howzat? The clamour to legalise sports betting 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 runs to win versus Australia.

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

He has made more than 10 hire the last thirty minutes - not to talk about the match however to keep revising his bet.

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

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

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

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

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

Other than horse racing, sports betting wagering of any kind is not allowed India. Despite that, illegal sports betting distributes flourish in the country.

'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 gambling money is directed towards cricket.

With no 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 greatest individual run scorer.

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

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

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

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

But despite this, it is "offline gaming", done through phone calls which control the marketplace.

Calls for legalisation

The clamour to legalise sports betting in cricket has grown after a panel appointed by India's Supreme Court proposed the concept, saying it would help secure down on corruption in the nation's favourite sport.

The Justice RM Lodha Commission was established to recommend changes in the performance of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.

Two franchises have been prohibited for two years after some gamers and team officials were discovered guilty of fixing parts of the match at the wish of bookmakers.

The panel also argues that legalised sports betting will bring in tax profits for the exchequer that could amount to $2bn a year.

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

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

It would likewise open a substantial business opportunity for licensed bookies and global online wagering companies to set up operations in India.

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

"If you work along with wagering companies, you will have a very effective approach of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But numerous also believe, that the taxes imposed on the bettor and the bookmaker will need to be reasonable to make it attractive enough for them to bet legally.

However, there are constraints.

"Definitely there will be illegal wagering due to the fact that (some) individuals wouldn't want to leave an audit path by going into the white market," states Mr Oborne.

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

Approval question

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

"Despite the fact that lots of people are involved in some sort of sports betting - it's still a controversial issue for numerous," states our unnamed punter.

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

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

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