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 central Mumbai, a middle-aged man is viewing the game, nervously. He's sitting on the edge of his grey colour sofa with his smart phone glued to his best hand.

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, and now as the Indian batsman prepares yourself to face the last over he's altered his mind.

"I believe India is winning, make the change," he tells 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 actually made $200 today," he says with a childish glee.

For more than three 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 India. Despite that, unlawful wagering syndicates grow in the nation.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's illegal 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 using their phones by making calls to bookies. Gamblers can bank on anything associated to the cricket match, from who is winning to the greatest individual run scorer.

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

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

And overseas wagering companies are using this loophole to tempt Indians. Although there are no online sports betting operators based out of India, a lot people have signed up accounts with offshore firms.

"Legally you can escape [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 control the market.

Require legalisation

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

The Justice RM Lodha Commission was set up to recommend changes in the functioning 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 two years after some gamers and team authorities were found guilty of fixing parts of the match at the behest of bookies.

The panel likewise argues that legalised wagering will generate tax incomes for the exchequer that could total up to $2bn a year.

Even bettors feel that legalising sports betting is a move in the right direction.

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

It would likewise open a big service chance for licensed bookmakers and international online sports betting companies to set up operations in India.

And it would help restrict match fixing in cricket and other sports betting, argue numerous, by helping make deals included in sports betting more transparent.

"If you work together with wagering companies, you will have a very efficient method of marking out match repairing," says George Oborne, who runs a mock wagering website, India Bet.

But many also think, that the taxes levied on the gambler and the bookie will need to be sensible to make it attractive enough for them to gamble legally.

However, there are restrictions.

"Definitely there will be unlawful sports betting since (some) people wouldn't wish to leave an audit trail by getting in the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted cash to place huge bets will never gamble legally.

Approval concern

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

"Even however many individuals are associated with some sort of gambling - it's still a controversial problem for lots of," 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 gambling in their territory.

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

Yet with the idea having been backed by an official panel for the very first time, a minimum of a debate has ignited around a topic - which until now was thought about a taboo.