Howzat? The clamour to legalise sports betting 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 located in main Mumbai, a middle-aged guy is viewing the video 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 made more than 10 calls in the last thirty minutes - not to talk about the match but to keep revising his bet.

Five minutes earlier his cash was on Australia, now as the Indian batsman gets ready to deal with the last over he's altered his mind.

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

And a couple of minutes later his prediction 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 illegal in India.

Aside from horse racing, sports betting of any kind is not allowed India. Despite that, unlawful sports betting syndicates thrive in the country.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's prohibited sports betting market deserves some $150bn a year. And much of that gambling cash is directed towards cricket.

Without any legal avenue, punters put 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 greatest specific run scorer.

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

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

And offshore wagering business are using this loophole to entice Indians. Even though there are no online sports betting operators based out of India, a lot individuals have signed up accounts with overseas companies.

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

But in spite of this, it is "offline gambling", done through phone calls which control the marketplace.

Require legalisation

The clamour to legalise wagering in cricket has grown after a panel selected by India's Supreme Court proposed the concept, stating it would assist clamp down on corruption in the nation's preferred sport.

The Justice RM Lodha Commission was set up to recommend 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 sports betting scandal emerged.

Two franchises have been banned for two years after some gamers and group authorities were discovered guilty of repairing parts of the match at the behest of bookmakers.

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

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

"I don't mind paying some money out my revenues, as long as I can bet openly," says our cricket gambler.

It would also open a huge company opportunity for licensed bookies and global online sports betting business to establish operations in India.

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

"If you work together with sports betting companies, you will have an extremely efficient technique of stamping out match repairing," states George Oborne, who runs a mock sports betting website, India Bet.

But many also think, that the taxes imposed on the bettor and the bookie will have to be reasonable to make it appealing enough for them to gamble lawfully.

However, there are constraints.

"Definitely there will be unlawful wagering since (some) individuals would not desire to leave an audit path by entering the white market," says Mr Oborne.

He includes that individuals who utilize unaccounted money to position big bets will never ever gamble legally.

Approval question

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

"Despite the fact that many individuals are included in some sort of gaming - it's still a controversial issue for numerous," says our unnamed punter.

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

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

Yet with the idea having been backed by an official panel for the very first time, a minimum of a dispute has actually ignited around a subject - which up until now was considered a taboo.