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 requiring 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 resting on the edge of his grey colour sofa with his cellphone glued to his ideal hand.

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

Five minutes previously his cash was on Australia, today as the Indian batsman gets all set to deal with the last over he's changed his mind.

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

And a couple of minutes later his forecast comes true, 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 wagering on cricket matches. We can't expose his name as what he's doing is illegal in India.

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

'Black cash'

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 gambling cash is directed towards cricket.

With no legal opportunity, punters place bets utilizing 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 transactions include so-called "black money", 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 web gaming, there is absolutely nothing comparable here.

And overseas wagering business are using this loophole to lure Indians. Even though there are no online sports betting operators based out of India, a lot individuals have registered accounts with offshore companies.

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

But in spite of this, it is "offline gaming", done through phone calls which dominate the market.

Require legalisation

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

The Justice RM Lodha Commission was established to recommend modifications 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 came to light.

Two franchises have actually been banned for two years after some gamers and team authorities were condemned of repairing parts of the match at the behest of bookies.

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

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

"I don't mind paying some money out my profits, as long as I can gamble openly," states our cricket bettor.

It would likewise open a huge organization opportunity for certified bookmakers and worldwide online wagering business to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue lots of, by helping make transactions involved in sports betting more transparent.

"If you work together with sports betting companies, you will have an extremely efficient approach of marking out match fixing," says George Oborne, who runs a mock wagering site, India Bet.

But many likewise think, that the taxes levied on the gambler 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 prohibited wagering because (some) people would not desire to leave an audit trail by entering the white market," states Mr Oborne.

He includes that individuals who use unaccounted money to put huge bets will never gamble lawfully.

Approval question

For sports betting gambling to be legalised, parliamentary approval will be needed to develop 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 gambling - it's still a controversial issue for many," states our unnamed punter.

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

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

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