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 needing 17 runs to win against Australia.

In his two-bedroom home located in central Mumbai, a middle-aged man is enjoying the video game, nervously. He's sitting on the edge of his grey colour sofa with his cellphone glued to his right hand.

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

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

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

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

"I have made $200 today," he states 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 prohibited in India.

Aside from horse racing, sports betting of any kind is not allowed in India. Despite that, unlawful sports betting distributes grow 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 cash is directed towards cricket.

With no legal avenue, punters put bets using their phones by making calls to bookmakers. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest specific run scorer.

Most of these transactions involve so-called "black money", which is cash not declared to the taxman.

The 1867 Public Gambling Act bars any kind of gambling in India, however unlike in the US which has a law forbiding internet gaming, there is nothing comparable here.

And overseas wagering companies are using this loophole to tempt Indians. Despite the fact that there are no online wagering operators based out of India, a lot individuals have signed up accounts with offshore firms.

"Legally you can escape [with this], as the law is uncertain for online gambling," says Mumbai- based attorney HP Ranina.

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

Calls for legalisation

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

The Justice RM Lodha Commission was set up to suggest changes in the performance of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League wagering scandal emerged.

Two franchises have been prohibited for two years after some gamers and team authorities were found guilty of repairing parts of the match at the behest of bookies.

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

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

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

It would also open a substantial organization chance for certified bookmakers and international online wagering companies to set up operations in India.

And it would assist limit match repairing in cricket and other sports betting, argue many, by assisting make deals involved in gambling more transparent.

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

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

However, there are limitations.

"Definitely there will be prohibited wagering since (some) individuals wouldn't desire to leave an audit trail by getting in the white market," says Mr Oborne.

He adds that people who use unaccounted cash to place big bets will never ever bet legally.

Approval concern

For sports betting gambling to be legalised, parliamentary approval will be required to produce a brand-new law, and politically this will be a difficult concept to sell.

"Although numerous individuals are included in some sort of gambling - it's still a questionable problem for numerous," 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 territory.

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

Yet with the idea having been endorsed by an official panel for the very first time, a minimum of a dispute has fired up around a subject - which up until now was thought about a taboo.