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 against Australia.

In his two-bedroom home situated in main Mumbai, a middle-aged guy is enjoying the 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 actually made more than 10 employ the last thirty minutes - not to talk about the match however to keep modifying his bet.

Five minutes earlier his cash was on Australia, however now as the Indian batsman prepares yourself to face the last over he's changed his mind.

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

And a few minutes later on his prediction comes to life, 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 years he's been banking on cricket matches. We can't expose his name as what he's doing is prohibited in India.

Besides horse racing, sports betting wagering of any kind is not allowed India. Despite that, prohibited sports betting distributes flourish in the nation.

'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 sports betting money is directed towards cricket.

Without any legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest private run scorer.

Most of these deals include so-called "black money", which is money not stated to the taxman.

The 1867 Public Gambling Act bars any kind of gaming in India, however unlike in the US which has a law prohibiting web gaming, there is absolutely nothing similar here.

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

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

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

Calls for legalisation

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

The Justice RM Lodha Commission was established to suggest 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 wagering scandal came to light.

Two franchises have been prohibited for 2 years after some players and team authorities were found guilty of fixing parts of the match at the request of bookies.

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

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

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

It would likewise open a huge business opportunity for licensed bookies 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 associated with sports betting more transparent.

"If you work alongside wagering companies, you will have an extremely efficient approach of stamping out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But many also 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 illegal wagering since (some) individuals wouldn't want to leave an audit trail by entering the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to position big bets will never bet lawfully.

Approval concern

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

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

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

"The procedure is so long and difficult that it will take years," says Mr Ranina."That's why, we are cynical about this ending up being a reality anytime soon."

Yet with the idea having been endorsed by a main panel for the very first time, at least an argument has sparked around a topic - which up until now was thought about a taboo.