Howzat? The clamour to legalise sports betting 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 against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged male is enjoying the video 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 hire the last 30 minutes - not to discuss the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, and now as the Indian batsman prepares yourself to deal with the last over he's changed his mind.

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

And a few minutes later on his prediction comes true, 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 3 decades 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 wagering of any kind is not allowed India. Despite that, prohibited sports betting distributes flourish in the country.

'Black money'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting 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 bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the greatest private run scorer.

The majority of these transactions involve so-called "black cash", which is cash not stated 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 nothing comparable here.

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

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

But regardless of this, it is "offline gaming", done through telephone call which control the market.

Calls for legalisation

The clamour to legalise sports betting in cricket has actually grown after a panel designated by India's Supreme Court proposed the idea, saying 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 functioning 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 banned for two years after some players and group officials were discovered guilty of repairing parts of the match at the behest of bookmakers.

The panel also argues that legalised sports betting will generate tax revenues for the exchequer that might amount to $2bn a year.

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

"I don't mind paying some money out my earnings, as long as I can bet publicly," says our cricket bettor.

It would likewise open a huge business chance for licensed bookies and international online sports betting business to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue many, by helping make transactions involved in gambling more transparent.

"If you work alongside wagering companies, you will have an extremely effective technique of marking out match repairing," states George Oborne, who runs a mock wagering website, India Bet.

But lots of likewise think, that the taxes imposed on the bettor and the bookie will need to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are restrictions.

"Definitely there will be unlawful wagering due to the fact that (some) individuals wouldn't wish to leave an audit trail by going into the white market," says Mr Oborne.

He adds that individuals who utilize unaccounted money to put big bets will never ever gamble lawfully.

Approval question

For sports betting to be legalised, parliamentary approval will be needed to create a brand-new law, and politically this will be a hard idea to offer.

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

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

"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 quickly."

Yet with the concept having actually been backed by a main panel for the first time, a minimum of a debate has ignited around a subject - which up until now was thought about a taboo.