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 requiring 17 runs to win versus Australia.

In his two-bedroom house situated 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 cellphone glued to his right-hand man.

He has made more than 10 hire the last 30 minutes - not to go over the match but to keep modifying his bet.

Five minutes earlier his money was on Australia, but now as the Indian batsman gets all set to face the last over he's changed his mind.

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

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

"I have actually made $200 today," he states with a childish 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 prohibited in India.

Aside from horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful sports betting syndicates prosper in the nation.

'Black money'

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

Without any legal avenue, punters put bets utilizing their phones by making calls to bookies. Gamblers can bank on anything related to the cricket match, from who is winning to the highest individual run scorer.

The majority of these deals involve so-called "black cash", which is cash not stated to the taxman.

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

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

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

But despite this, it is "offline sports betting", done through call which control the market.

Calls for legalisation

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

The Justice RM Lodha Commission was established to recommend changes in the functioning of India's cricket regulatory body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal came to light.

Two franchises have been banned for two years after some players and team authorities were discovered guilty of fixing parts of the match at the behest of bookmakers.

The panel likewise argues that legalised sports betting will bring in tax profits 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 do not mind paying some money out my earnings, as long as I can gamble openly," says our cricket gambler.

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

And it would help restrict match fixing in cricket and other sports betting, argue lots of, by helping make transactions associated with gambling more transparent.

"If you work alongside wagering business, you will have a very reliable approach of stamping out match repairing," says George Oborne, who runs a mock wagering site, India Bet.

But many likewise believe, that the taxes levied on the bettor and the bookie will have to be affordable to make it appealing enough for them to bet legally.

However, there are constraints.

"Definitely there will be unlawful wagering since (some) people wouldn't wish to leave an audit trail by going into the white market," states Mr Oborne.

He includes that individuals who use unaccounted cash to position huge bets will never bet legally.

Approval question

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

"Despite the fact that lots of people are associated with some sort of sports betting - it's still a controversial concern for many," states our unnamed punter.

And considered that India has a federal structural - each state will have to likewise pass a different law to legalise sports betting gambling in their area.

"The procedure is so long and challenging that it will take years," states Mr Ranina."That's why, we are negative about this ending up being a truth anytime soon."

Yet with the concept having been backed by an official panel for the very first time, at least an argument has fired up around a subject - which up until now was thought about a taboo.