Howzat? The clamour to legalise sports betting wagering 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 house situated in main Mumbai, a middle-aged guy is enjoying the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his ideal hand.

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

Five minutes earlier his money was on Australia, now as the Indian batsman prepares to face 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 prediction comes to life, as India wins the match in a nail-biting finish.

"I have actually made $200 today," he says with a childlike glee.

For more than 3 decades he's been banking 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 wagering distributes grow in the country.

'Black cash'

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 gambling cash is directed towards cricket.

With no legal avenue, punters position bets utilizing their phones by making calls to bookmakers. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

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

The 1867 Public Gambling Act bars any type of gambling in India, but unlike in the US which has a law prohibiting internet sports betting, there is absolutely nothing comparable here.

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

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

But regardless of this, it is "offline gaming", 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 concept, saying it would help secure down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to recommend modifications in the functioning 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 2 years after some gamers and group officials 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 incomes for the exchequer that might total up to $2bn a year.

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

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

It would also open a substantial service opportunity for certified bookies and international online sports betting companies to set up operations in India.

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

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

But many likewise think, that the taxes imposed on the bettor and the bookmaker will need to be sensible to make it appealing enough for them to gamble lawfully.

However, there are limitations.

"Definitely there will be unlawful wagering because (some) individuals would not wish to leave an audit trail by going into the white market," states Mr Oborne.

He adds that people who use unaccounted money to put huge bets will never ever bet lawfully.

Approval concern

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

"Although many individuals are involved in some sort of gambling - it's still a controversial concern for many," says our unnamed punter.

And given that India has a federal structural - each state will need to also pass a separate law to legalise sports betting in their territory.

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

Yet with the concept having been backed by a main panel for the first time, at least an argument has actually ignited around a topic - which previously was considered a taboo.