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 versus Australia.

In his two-bedroom house located in central Mumbai, a middle-aged guy is seeing the game, nervously. He's resting on the edge of his grey colour couch with his mobile phone glued to his right-hand man.

He has actually made more than 10 employ the last thirty minutes - not to discuss the match but to keep revising his bet.

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

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

And a couple of minutes later on his forecast comes real, as India wins the match in a nail-biting finish.

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

For more than 3 years he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

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

'Black money'

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

Without any legal avenue, punters place 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 transactions include so-called "black money", which is cash not declared to the taxman.

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

And overseas sports betting business are using this loophole to lure Indians. Although there are no online wagering operators based out of India, a lot people have actually registered accounts with offshore firms.

"Legally you can get away [with this], as the law is uncertain for online sports betting," states Mumbai- based lawyer HP Ranina.

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

Require legalisation

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

The Justice RM Lodha Commission was set up to suggest modifications 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 emerged.

Two franchises have been prohibited for two years after some players and team officials were condemned of repairing parts of the match at the wish of bookmakers.

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

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

"I do not mind paying some cash out my revenues, as long as I can gamble publicly," says our cricket gambler.

It would also open a huge company chance for licensed bookies and international online wagering companies to establish operations in India.

And it would assist restrict match fixing in cricket and other sports betting, argue lots of, by assisting make deals associated with sports betting more transparent.

"If you work alongside sports betting business, you will have a really efficient method of marking out match repairing," says George Oborne, who runs a mock sports betting website, India Bet.

But lots of likewise think, that the taxes levied on the gambler and the bookmaker will need to be reasonable to make it appealing enough for them to bet lawfully.

However, there are restrictions.

"Definitely there will be illegal wagering due to the fact that (some) people wouldn't want to leave an audit trail by getting in the white market," states Mr Oborne.

He adds that people who utilize unaccounted cash to put big bets will never gamble lawfully.

Approval question

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

"Although many individuals are included in some sort of gambling - it's still a questionable problem for many," says our unnamed punter.

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

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

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